BEACH ENERGY LIMITED — M&A Activity 2009

Aug 6, 2009

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7 August 2009

Ref: #117/09

The Manager, Companies ASX Limited Companies Announcement Office Electronic Lodgement System

Dear Sir,

ANNOUNCEMENT TO ASX

Notice of the Status of Defeating Conditions Section 630(3) of the Corporations Act

TO: 1. Drillsearch Energy Limited ACN 006 474 844 ( Drillsearch ); and

1. ASX Limited

In relation to the takeover offer by Beach Petroleum Limited ACN 007 617 969 (Beach) dated 15 June 2009 (Offer) for all of the issued fully paid shares in Drillsearch other than those held by Beach, Beach gives notice under subsection 630(3) of the Corporations Act as follows:

1. the Offer and each contract formed by acceptance of an Offer, is free from each of the conditions specified in section 9 of Annexure A of the Offer; and

2. Beach's voting power in Drillsearch is 22%.

Dated 7 August 2009.

Yours faithfully,

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Bob Kennedy Chairman

25 Conyngham Street, Glenside South Australia 5065 GPO Box 175 Adelaide 5001 Telephone (618) 8338 2833 Facsimile (618) 8338 2336 Beach Petroleum Ltd ABN 20 007 617 969 www.beachpetroleum.com.au