Beach Petroleum Limited (ASX:BPT) Dividend Follows Strong 2008/09 Operating Performance

Adelaide, Aug 28, 2009 AEST (ABN Newswire) - Beach Petroleum Limited's (ASX:BPT)(PINK:BEPTF) Managing Director, Reg Nelson, said, "Beach's total revenue for the year of close to A$1 billion is a resounding record".

Beach has posted record financial results in the year to June 30 with higher oil and gas sales revenue boosted by asset sales to generate total revenue for the year of close to A$1 billion.

The sale of the Tipton West coal seam gas asset in a deal worth A$400 million has allowed Beach to repay all corporate debt and end the year with cash on hand of A$136.2 million.

That comes after rewarding shareholders with a special fully franked dividend of 2 cents per share and declaring a further 1 cent per share ordinary final dividend (partly franked) from the 2008/09 results. This final dividend follows an interim dividend of 0.75 cents a share and brings the full year dividend payment to shareholders of 3.75 cents per share.

Beach chief executive officer, Hector Gordon, said, "These results reflect the very solid underlying business of Beach."

"In the year Beach's oil production increased, principally due to our success in discovering and developing new reserves along the western flank of the Cooper basin. We plan to maintain a very active exploration program in that region," said Mr Gordon.

Beach's total sales revenue for the year ended 30 June 2009 increased by 3% to a record A$581 million from A$564 million previously.

Beach's production during FY09 was a new record for the company, with 9.6 million barrels of oil equivalent (MMboe) achieved. Oil and gas liquids production totalled 11,267 boepd with gas production volumes of 15,026 boepd. Oil production within the Cooper/Eromanga basins was 25% higher than the previous year.

The significant rise in Beach's operated Cooper basin oil production is due to additional discoveries and development wells on the western flank of the basin, as well as the installation of pipeline infrastructure to facilitate prolonged high oil transportation rates.

The increase in production was primarily associated with development at the Parsons, Callawonga and Perlubie fields all located within PEL92.Oil sales revenue was up by A$30 million due to the higher production. Beach achieved an average realised oil price of A$93 per barrel (before hedging adjustments) compared to $A111/bbl in the previous corresponding period. Beach continues to have protection from lower oil prices with over 1 million barrels of oil sales in 2009/10 hedged at a minimum of $US60/bbl (including 600 kbbls at a minimum of US$80/bbl).

Earnings before interest, tax, depreciation, amortisation and write-offs (EBITDAW) totalled A$641 million, up from A$245 million in the previous financial year.

The large increase was due principally to the gain on the sale of the Tipton West assets as well as foreign currency gains and smaller hedging losses.

Beach chairman, Bob Kennedy said, "The latest results underscore what a strong financial position Beach is now in. Beach has no debt, a large cash balance and is producing more oil and gas than ever before."

"Beach has a fantastic suite of assets and is now in a very strong financial position."

"The company has the cash resources, backed by a strong, ongoing revenue base and a growing reserves base, to take advantage of new growth opportunities as they occur."

"Beach is constantly on the lookout for opportunities to increase shareholder value and our record of acquiring, discovering and generating value by divestment of assets over the last decade or more has been extraordinary." "We aim to continue to apply that same successful formula to any opportunity we assess in the future," Mr Kennedy said.

Contact

Hector Gordon Chief Operating Officer TEL: +61-8-8338-2833