The tenement is located south and southeast of PEL 92 in which the Sellicks-1 oil discovery was made by Beach in July this year.

The Sellicks-1 discovery, which flowed oil at approximately 2000 barrels per day from the Permian Patchawarra Formation, significantly upgraded the prospectivity of PELA 107.

Beach said the permit contains some prospects already mature for drilling in a region where Santos operates several producing oil fields.

Beach will earn a 40% interest in PELA 107 by contributing to the cost of exploration drilling and the acquisition of seismic which will take place after completion of native title negotiations and the subsequent award of the permit. Beach has the option to earn an additional 10% interest by contributing to further activity in the permit.

Beach added it will act as operator of the PELA 107 joint venture during the farm-in program and any resultant production activity in the permit.