The company’s drilling schedule includes offshore wells in New Zealand, the Gippsland Basin area of Bass Strait and the north-west of Western Australia, as well as new targets in the onshore Otway Basin and the Cooper Eromanga Basin, according to managing director Reg Nelson.

“While this schedule is naturally subject to change, depending on rig availability, weather and other factors, it is a substantial program and represents all confirmed drillings with joint venture partners – with several additional proposals still to be confirmed,” Nelson said.

“It is by far the most comprehensive program that Beach has embarked upon and would rank among the most active petroleum exploration and development programs in Australia this year.”

Yesterday, the company reported a new Cooper Basin oil pool discovery and a 40% increase in its Queensland CSM reserves.

A new oil pool was discovered at Harpoono-2, south of Moomba.

Beach said the Harpoono-2 oil appraisal/development well in PPL209, 55km south of Moomba, had flowed oil to surface at 1080 barrels of 43.1 API oil per day with no water from a drill stem test of the McKinlay Formation. The DST was conducted over the 1191m-1196.4m interval through a half-inch choke.

Beach has a one-third interest in the well. Operator Stuart Petroleum holds the remaining interest. A second DST will be conducted on Harpoono-2 today, targeting the Murta Formation between 1152 m and 1161m.

Once the well is completed, the drill rig will move to spud Harpoono-3 – the second in a two-well appraisal and development program encouraged by last year’s 3D seismic survey in PEL 113.

If successful, the program was likely to be expanded to include the drilling of two adjacent exploration prospects, Rimfire and Revenue, according to Nelson.

Meanwhile in Queensland, Beach’s decision last September to enter the CSM sector has been rewarded with a 40% upgrade announced today to proven and probable reserves (2P) at the Tipton West project.

Beach entered the project last year, injecting $35 million into Stage 1 development of Arrow’s 100%-owned Tipton West CSM project in the Surat Basin to earn a 40% upstream equity in the project’s Dalby Block (ATP 683P) and neighbouring Production Licence 198.

The company today announced that a reserves review of Tipton West by Dallas-based Netherland, Sewell and Associate increased 2P reserves at Tipton West by 50 petajoules to a new total of 174PJ. Proven, probable and possible (3P) reserves rose 7% or 159PJ to 2265PJ.

“The increase in the Tipton West reserves is attributable to the addition of reserves from the mini pilots at the northern and southern sectors of field,” Nelson said.

“With ongoing development drilling and as the field continues to be de-watered, we are confident that the reserves boost will be further built on, with enhancements of 1P and 2P reserves.”

Nelson said Beach was optimistic of early returns on this investment, which was part of a deliberate strategy to rebuild gas as a company cornerstone.

Beach already boasts substantial onshore Queensland oil production through its 100%-owned Kenmore-Bodalla South fields.

Under the Tipton West farm-in, the company also has an option to acquire a 40% interest in the adjacent Dalby South (ATP 683P), Millmerran and ATP 689P blocks by contributing $7 million towards CSM exploration in these tenements.

The Tipton West project involves one of Australia’s largest onshore gas fields, with more than 2 trillion cubic feet of possible reserves.

The $35 million stage one development program is expected to involve some 75 new wells and associated gathering infrastructure and water handling.

The new $340 million power station being developed at Braemar in south-east Queensland by Babcock & Brown and ERM Power has already signed a gas sales agreement to buy up to 13.3PJ of gas per annum from Tipton West – delivering Beach its revitalised gas revenue and earnings from March 2007.

CSM is already supplying more than 30% of Queensland’s total gas demand. Tipton West is close to the Roma-to-Brisbane gas pipeline, which accesses potential gas markets in Queensland and other states.