csg gas stake offer are 'tempting'

High volume! increasing SP! now i know why everyone is buying into this one!

Sounds very very positive to holders!


Beach Petroleum Says Coal-Seam Gas Stake Offers Are ‘Tempting’


By Angela Macdonald-Smith
Feb. 25 (Bloomberg) -- Beach Petroleum Ltd., the Australian
company considering offering stakes in coal-seam gas ventures in Queensland state, said initial bids for the assets are within a range that should result in a sale.

There has been a “good level of interest” in the Tipton
West and related assets, which could raise between A$300 million($195 million) and A$1 billion based on recent coal-seam gas transactions, Managing Director Reg Nelson said today.

Adelaide- based Beach’s partners in the unit, Arrow Energy Ltd. and Royal Dutch Shell Plc, hold the rights to pre-empt any offers, he said.

Australia’s industry to extract natural gas from coal seams
attracted more than A$17 billion ($11 billion) of investments last year as companies including ConocoPhillips and Petroliam Nasional Bhd. bought into ventures that could meet rising demand in north Asia for cleaner-burning fuels.

Beach paid A$35 million to gain its 40 percent stake in Tipton West. “I think the offers are in the range where we could be tempted” to sell, Nelson said in an interview in Sydney.

Beach would use the proceeds for investments it is studying both in Australia and elsewhere that may yield earlier returns than would be possible from the coal-seam gas assets, he said.

An agreement on the sale may be reached within two months.
Core Energy Group Pty and Adelaide Equity Partners Ltd. are
advising Beach on the sale process, Nelson said.

Beach, which yesterday reported first-half profit more than
doubled to a record A$127.5 million, today gained 1.5 Australian cents, or 2 percent, to 78 cents in Sydney trading.

Cheers,
Good luck to holder!