Beach holds a 30% equity in the Basker, Manta and Gummy oil and gas fields, offshore Victoria (known as the BMG Project). This project presently involves oil production from 4 wells in the Basker field and one well in the Manta field, all of which are connected, via subsea connections, to the Crystal Ocean FPSO. Separation of gas associated with the oil production is undertaken on the Crystal Ocean with excess gas reinjected into the Basker Field and oil transferred to a leased shuttle tanker (Basker Spirit).

Key events during the 2008 year were:

• in April 2008, Beach completed the sale of a 10% interest in the BMG project to Sojitz Energy Australia Pty Ltd for $123 million. This transaction had an effective date of 31 December 2007 and reduced Beach's equity in the project to 30%.
  
   
• The Basker-6ST1 well was drilled and commenced production in early September, initially adding approximately 3,000 bopd to production.

The Joint Venture is currently reviewing options for further development expansion.