In 2008, Beach acquired a 20 percent interest in each of the North Shadwan and South East July Concessions, in the Gulf of Suez, Egypt.

The North Shadwan Concession is operated by BP Exploration (Delta) Limited and contains three existing undeveloped oil discoveries and several attractive exploration prospects.  Government approval has been granted to develop two of these fields (NS-377 and NS-385) which were discovered during the mid 1980's and are offshore but close to the eastern shore of the Gulf.  First production from these fields is planned for late in 2009. 

The NS-377 and NS-385 fields are estimated to contain recoverable oil reserves of 11 million barrels in Miocene sandstones.  Development drilling of the fields is expected to commence in June 2009 with drilling of NS-377-3 as a deviated well from onshore to intersect the oil bearing sandstones approximately 80 metres from the original discovery well.  Planning is underway to facilitate export and sale of the crude with production expected to commence in late 2009.

The third discovery (formerly NS394-1A and now named "Burtocal") was made in late 2007. The discovery well penetrated a thick oil column within the Nubia Formation, an extremely prolific reservoir across the Gulf of Suez.  During the quarter, an appraisal drilling programme was undertaken to test separate fault compartments in the Burtocal structure and to assist in delineating potential reserves. The sidetrack appraisal well  NS394-2B encountered a gross oil column of at least 31 metres in good quality reservoir sands in the Nubia Formation.  The well has been plugged and suspended for potential future re-entry as an oil production well.  The results from exploration and appraisal drilling will be integrated into the ongoing evaluation of potential development options.

The South East July Concession contains several attractive oil prospects, the South July prospect being the first of these to be evaluated.  South July-1 spudded on 24 December, targeting a mean potential oil resource of approximately 100 million barrels in the Rudeis and Nubia Formations within a tilted fault block closure. The 4,000 metre well is expected to take up to 90 days to drill. The drilling of South July-1 is being conducted by joint venture partner Dana Petroleum (E&P) Limited, on behalf of Concession Operator Santos Egypt Pty Ltd.