In December 2007, Beach entered into a farmin agreement with a subsidiary of Island International Exploration BV under which Beach will acquire, subject to regulatory approvals, a 25% interest in the 4200 square kilometre "Durresi" Block in the Adriatic Sea, offshore Albania.  The permit contains an unappraised gas/condensate discovery and several undrilled oil and gas prospects and leads.  Exploration will target deeper water prospects that have the potential to yield reserves in excess of 100 million barrels of oil equivalent (net to Beach).  The exploration program is expected to consist of seismic acquisition, followed by the drilling in 2009/10.