Beach Petroleum Limited (ASX:BPT) And Sundance (ASX:SEA) Pursues Unconventional Oil And Gas Reserves

Adelaide, Oct 22, 2009 AEST (ABN Newswire) - Beach Petroleum Limited (ASX:BPT)(PINK:BEPTF) and Sundance Energy Limited (ASX:SEA) will work together to pursue unconventional oil and gas reserves in Australasia and, possibly, in other parts of the world.

The companies have signed a Memorandum of Understanding (MOU) to work together to identify, evaluate and acquire interests in unconventional oil and gas plays.

Beach has already gained experience in unconventional gas projects, including coal seam gas, shale gas and tight gas and has a contingent (2C) net resource of 179 million barrels of oil equivalent with further potential in its Australasian interests.

Sundance has extensive experience in the development of the relatively more mature North American shale resources.

In North America gas from shale style deposits now accounts for more than 40% of domestic gas production of over 1 trillion cubic feet per year.

To cement the deal Beach has agreed to subscribe for 17.5 million Sundance shares at 13.5 cents per share, equivalent to 9 per cent in Sundance, raising A$2.36 million to help Sundance develop its asset base and to pursue new opportunities, including those arising from the strategic alliance.

Beach has been also offered a seat on the Sundance board as a result of the deal.

Beach Managing Director, Reg Nelson, said "Sundance has a proven track record of identifying shale opportunities in the US market at an early stage, developing them and then bringing in larger partners. This is a good fit with Beach's strategy of partnering with emerging energy companies with a promising asset base and sound technical expertise. Beach brings its own technical expertise and balance sheet strength to the relationship.; the alliance with Sundance will allow us to keep in touch with the rapid advances in technology occurring in the USA."

Sundance Managing Director, Jayme McCoy, added "Beach is clearly ahead of the game when it comes to unconventional plays in the Australian market. We very much look forward to joining forces with Beach to identify and develop these opportunities."

Contact

Reg Nelson Managing Director, FAusIMM Tel: +61-8-8338-2833 Fax: +61-8-8338-2336