beach farm in , page-2

Bass Basin Farmout to Beach Petroleum

Cue is pleased to announce that it has farmed out an interest in T/38P in the offshore Bass Basin, to Beach Petroleum Limited (Beach).

Beach will earn an 80% interest in a defined portion of the permit by paying for the drilling of the Spikey Beach – 1 exploration well which will be operated by Beach and is expected to be drilled in the second half of 2008. (See map)
Cue Energy Resources will remain operator for the overall permit.

Participants in the T/38P farmout block will be:

Beach Petroleum Limited 80% (Operator)

Galveston Mining Corporation Pty Ltd 10%
(a wholly owned subsidiary of Cue Energy Resources Limited)

Exoil Limited 10%
(The T/38P farmin is subject to formal documentation and regulatory authority
approval)

The participants in the remainder of the T/38P are:
Galveston Mining Corporation Pty Ltd 50%
Exoil Limited 50%

JW