The Share Purchase Plan (SPP) is in addition to Beach Petroleum's allotment late last week of 334.4 million shares to institutional investors to raise $15 million.

"The total $20 million raising will be used partially to fund the acquisition of Oil Company of Australia's 72.75 per cent interest in the Kenmore, Bodalla South and Black Stump oil fields in southwest Queensland, and several other tenement holdings," the company said. "It will also provide working capital for the company and assist in further development of these important new assets." The acquisition will take Beach's total working interest in Bodalla to approximately 95% with Santos having the remaining 5%.

In other Beach Petroleum news, the company has also announced that it expects to commence the first of its three well drilling program in the Victorian section of the onshore Otway Basin this week. Beach made four successful gas commercial discoveries in the area, near Port Campbell, in the opening six months of this year.

The latest Otway Basin exploration program will commence in PEP 154 with the spudding of the Naylor South-1 well. Beach Petroleum also has a 10% interest in the Marabou-1 deep water oil exploration well currently being drilled offshore northwest Western Australia in the Browse Basin.