Beach to increase drilling program

Offshore staff

Included in Beach Petroleum Ltd.'s recently announced 2006-2007 exploration program are appraisal wells offshore Australia in Gippsland basin and off New Zealand.

The company's expected major production contributors in the next 12 months would be onshore in Cooper/Eromanga basins and offshore in Gippsland basin.

The offshore Gippsland Basker-Manta oil project last month completed a successful extended production test and will move to full field production in October at an expected production rate of approximately 12,500 b/d of oil, net to Beach.

The entire program including onshore and offshore drilling, is budgeted at almost $73 million. The plan will increase Beach's drilling from 19 wells this year to a total of 69 wells.

6/29/06