Beach has diversified its energy portfolio as a pioneer contributor to geothermal energy exploration.  In anticipation of an increase in demand for base-load renewable power, Beach entered into a farmin agreement with Petratherm Limited in January 2007, through which Beach may earn a 21 percent interest in four geothermal tenements in the Arrowie Basin in South Australia. The tenements are located close to entry points in the main transmission grid.  Beach will be Operator for the Paralana-2 test well and is able to earn an interest of up to 36 percent through carrying out further commitments within the licences.  Drilling of the Paralana-2 well is expected to commence in late May 2009.