Beach Energy Limited Stock Market Press Releases and Company Profile

Adelaide, June 2, 2008 AEST (ABN Newswire) - The primary focus of the initiative is a A$190 million placement to fully fund Beach's previously announced proposed acquisitions in Egypt and other identified opportunities now under review.

The proposed capital raising also includes a Share Purchase Plan and Bonus Options issue.

- A$190 million placement of new shares to institutional and sophisticated retail investors

- Placement fully funds three previously announced onshore and offshore Egyptian acquisitions in highly prospective Basins - potential to add 8 mmb of net 2P oil reserves in FY2009

- Additional Middle East/North Africa opportunities currently being evaluated by Beach

- Eligible shareholders to be offered opportunity to participate in a Share Purchase Plan ("SPP") and bonus options issue

- Delivering on strategy to increase exposure to high impact projects

Potential Egyptian acquisitions

Beach has entered into agreements (subject to various conditions including pre-emption) to acquire interests in the offshore North Shadwan and South East July concessions and onshore North Qarun concession, all in Egypt (as announced to ASX on 22 May and 30 May). These interests are non-operated and range between 20-25% of the relevant concession ("The Egyptian Acquisitions"). The total costs (including estimated development expenses) of The Egyptian Acquisitions will be approximately $150 million.

The 20% interest in the North Shadwan concession is being acquired from TriOcean Energy and is subject to a pre-emptive right in favour of BP Exploration (Delta) Limited, a subsidiary of British Petroleum, (this pre-emptive right expires 28 June).

In addition to the above, Beach is also at an advanced stage of evaluating further opportunities in the Middle East and North African region.

Managing Director, Mr Reg Nelson said today that "The Egyptian Acquisitions follow a strategic decision by Beach to increase its focus on opportunities in highly prospective areas, and give Beach exposure to projects which have the potential to make material additions to its reserve base.

Beach remains focussed on its production target of 9 mmboe in FY2009 and on delivering the upside potential in its core Cooper Eromanga, Surat and Gippsland Basin assets. The proposed addition of The Egyptian Acquisitions provides important new growth options for the Company over and above its existing exploration and development activities.

Placement, SPP and bonus options issue

Beach intends to raise approximately A$190 million via a placement of new ordinary shares to institutional and sophisticated retail investors. The placement is expected to be completed by Thursday 12 June following investor presentations to international and domestic institutions. New shares issued under the placement will rank equally with existing shares.

Beach will also offer eligible shareholders the opportunity to subscribe for up to A$5,000 worth of shares through a non-underwritten share purchase plan ("SPP"). Pricing of the SPP will be the same as the pricing of the placement.

In addition, all new and existing eligible shareholders will be entitled to participate in a 1 for 10 bonus options issue, with an exercise price of A$2.00 per share and expiry of 30 June 2010.

Further details regarding the SPP and the bonus options issue will be announced following the conclusion of the placement.

Investor presentation

The investor presentation associated with the capital raising has been lodged with ASX by Beach today and is available on Beach's website:

http://www.beachpetroleum.com.au

Joint Lead Managers to the placement are ABN AMRO Equity Capital Markets Australia Limited and Euroz Securities Limited. Beach is being advised by Adelaide Equity Partners Limited.

This market announcement does not constitute an offer to sell or the solicitation of an offer to buy any securities in the United States or any other jurisdiction. The securities have not been, and will not be, registered under the U.S. Securities Act of 1933, as amended (the Securities Act), or any U.S. state or other securities laws. The securities may not be offered, sold or otherwise transferred except pursuant to an exemption from, or in a transaction not subject to, the registration requirements of the Securities Act and any other applicable securities laws.

Contact

Reg Nelson
Managing Director
Beach Petroleum
Tel: +61-8-8338-2833

Mark Lindh
Adelaide Equity Partners
Tel: +61-8-8232-8800


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