In November 2007, Beach entered into a farmin agreement through which it earned a 25% interest in four onshore tenements in the Ebro Basin, Spain by participating in a high resolution, 2D seismic program.  The presence of potentially large sub-thrust structures and hydrocarbon seeps indicate that this area has the potential to host large fields, with gas the primary hydrocarbon type.  Multiple untested play types, the existence of existing pipeline infrastructure, high prevailing gas prices and ready markets provide strong incentives to conduct gas exploration in this area.