Beach will proceed to reduce the number of shares on issue from 1.2 billion to around 183 million. The consolidated shares will commence trading today on a deferred settlement basis.

Under the plan, one bonus option for every four shares held will also be issued in mid-July. The one for seven consolidation implies a share price of 34.3c, based on last Friday's close of 4.9c.

Speaking at the South Australian Resources & Energy Investment Conference last week, Beach Petroleum chief executive, Reg Nelson, said the company's Victorian gas wells and its Bodalla fields in south-west Queensland are expected to generate strong earnings over the next 12 months.

"Overall, Beach's estimated quarterly cash flow from these two projects for the next financial year will be, on average, at least a net $1 million per month, at an assumed oil price per barrel of $47," Mr Nelson said.

Beach's historic Acrasia-1 oil will is also due to start commercial production next month.