Beach Petroleum Limited (ASX:BPT) Major Coal Seam Gas Reserve Increase

Adelaide, Feb 6, 2009 AEST (ABN Newswire) - Beach Petroleum Limited (ASX:BPT)(PINK:BEPTF) is pleased to announce a major upgrade for its Surat Basin Coal Seam Gas ("CSG") reserves, following advice from Arrow Energy Limited ASX:AOE), the Operator of the relevant tenements.

The Company has received advice from Arrow that independent consultants, Netherland, Sewell and Associates, Inc. ("NSAI") have assessed and released revised reserves figures for the Tipton West Tenements. The table below summarises this advice in respect of the current net reserves position within Beach's tenements.

Notably, Beach's net Proved, Probable and Possible (3P) reserves have recently increased by 34% to more than 1115 PJ (192 million barrels of oil equivalent or mmboe) as at 31st December 2008.


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                    Beach net reserves in PJ (mmboe)
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                         1P       2P        3P
December 2008 Increase   15 (3)   21 (4)    281 (48) 
December 2008           111 (19)  467 (80)  1115 (192)
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The relevant properties are located within Authority to Prospect 683P and in Petroleum Lease 198 in the Surat Basin of eastern Queensland, collectively referred to as the Tipton West Joint Venture (TWJV).

This reserves upgrade continues the joint venture's strategy of proving up additional reserves within the TWJV area in order to provide a significant volume of reserves to the proposed Arrow / LNG Limited LNG plant. This process will continue over the next year as the Joint Venture continues its significant exploration and appraisal programs within the TWJV areas.

The participants in the Tipton West Joint Venture are:
ASX:AOE Arrow Energy Limited 42% (Operator)
ASX:BPT Beach Petroleum Limited 40%
Shell 18%

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