Entek Energy Limited is a 28.15% interest holder in the SW Queensland block ATP-269P, operated by Beach Petroleum Limited.

A three well exploration drilling program in the block commenced on June 5th 2007. The outcome, in order of drilling, was as follows: - Nudgee-1 dry hole. - Marcoola-1 new field discovery. - Warragon-1 oil discovery, awaiting testing.

Forward Plans

Marcoola-1 The well has been completed down-hole. Surface production facilities are presently being installed. It is anticipated that production from the Hutton Sandstone formation will commence during November 2007.

Historical Background: • Marcoola-1 was drilled to a total depth of 1,348 mRT. • DST 1 conducted over the interval 1,208.5m-1,220m in the Hutton • Sandstone flowed for 20 minutes before the packers failed. A total of 6 barrels of oil was reversed out of the test string. There was no evidence of water. The oil recovered had an indicated API gravity of 44.9. • DST 2 conducted over the interval 916.5m - 923.87m in the Murta Formation recovered 3.85 barrels of oil/oil emulsion (approx. 2.4 barrels oil) over a 96 minute flow period. The oil recovered had an indicated API gravity of 56.4. Whilst oil was recovered during testing, the test was marred by packer seat failures.

Warragon-1 It is anticipated that a workover rig will move over the Warragon-1 well in early October 2007 to run tubing into the well with Tubing Conveyed Perforating equipment. Following perforation of the Toolachee Formation, flow testing of the well will be performed to establish inflow performance. The flowtest will then be analysed and a decision made on whether to complete the well and bring onto production, carry out reservoir stimulation or plug and abandon.