Beach acquires Gulf of Suez interest

Offshore staff

ADELAIDE, Australia-- Beach Petroleum Ltd. has agreed with Santos Egypt Pty Ltd. to acquire via a farm-in arrangement, a 20% interest in the South East July concession in the Gulf of Suez, offshore Egypt. The agreement is subject to waiver of pre-emptive rights by the Egyptian General Petroleum Corp. and the approval of the government of the Arab Republic of Egypt.

The South East July concession currently is held 100% by Santos and contains several oil prospects, one of which will be evaluated by the July South-1 exploration well in 4Q 2008.

Beach also has agreed to acquire Santos Egypt's 25% interest in the onshore North Qarun concession, located close to Cairo in the Gindi basin of the Western Desert.

05/22/08