BEACH ENERGY LIMITED — M&A Activity 2009

Jul 12, 2009

Level 8 l 16 Spring Street l Sydney NSW 2000 P l +61 2 9241 4440 F l +61 2 9241 4404 E l admin@drillsearch.com.au W l www.drillsearch.com.au

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13 July 2009

Manager of Company Announcements ASX Limited Level 6, 20 Bridge Street SYDNEY NSW 2000

Takeover bid for Drillsearch Energy Limited by Beach Petroleum Limited – Fourth Supplementary Target’s Statement

Please find enclosed, in accordance with section 647(3)(b) of the Corporations Act 2001 (Cth), Drillsearch Energy Limited’s fourth supplementary target’s statement dated 13 July 2009 ( Fourth Supplementary Target’s Statement ).

The Fourth Supplementary Target’s Statement has been lodged with the Australian Securities & Investments Commission and Beach Petroleum Limited today.

For and on behalf of the Board

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Ian Bucknell Company Secretary

About Drillsearch Energy Limited (ASX:DLS), which listed on ASX in 1987, explores and develops conventional oil and gas projects. Drillsearch Energy merged with Great Artesian Oil and Gas (ASX:GOG) in 2008. The merged group has a strategic spread of petroleum exploration and production acreage in Australia’s most prolific onshore oil and gas province, the Cooper/Eromanga Basins in South Australia and Queensland, as well as offshore exploration in the Carnarvon and Gippsland Basins. Drillsearch also has interests in PNG and Canada. The Company’s focus is on ‘brownfields’ exploration where geological risk is reduced and there is access to existing infrastructure, ensuring that any discoveries can be brought into production.

ABN l 73 006 474 844

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Drillsearch Energy Limited ACN 006 474 844

Fourth Supplementary Target’s Statement

THE DIRECTORS’ UNANIMOUS RECOMMENDATION TO SHAREHOLDERS IS UNCHANGED:

REJECT

THE INADEQUATE AND OPPORTUNISTIC TAKEOVER OFFER FROM BEACH PETROLEUM LIMITED

About this document

This document is the fourth supplementary target’s statement issued by Drillsearch Energy Limited ABN 73 006 474 844 ( Drillsearch ) under section 644 of the Corporations Act 2001 ( Fourth Supplementary Target’s Statement ) in relation to the off-market takeover offer made by Beach Petroleum Limited ABN 20 007 617 969 ( Beach ) to acquire the ordinary shares in Drillsearch.

This Fourth Supplementary Target’s Statement supplements and is to be read together with Drillsearch’s original target’s statement dated 30 June 2009 ( Original Target’s Statement ), Drillsearch’s first supplementary target’s statement dated 2 July 2009, Drillsearch’s second supplementary target’s statement dated 3 July 2009 and Drillsearch’s third supplementary target’s statement dated 6 July 2009.

PEL 91 – Marino-1 well approved for drilling

Section 6.6 of the Original Target’s Statement noted that as part of the 2009 work programme, Drillsearch and Beach have committed to drilling two oil exploration wells in PEL 91, the 91-45 and 9148 Prospects, upon the conclusion of Beach’s six-well exploration programme in the adjacent PEL 92.

Drillsearch is pleased to announce that the authority for expenditure and drilling programme for the Marino-1 exploration well in PEL 91 have now been approved by Drillsearch and Beach (operator). The Marino-1 (see attached map) exploration well was previously identified as the 91-45 Prospect in the Original Target’s Statement (page 35). Based on well drilling times seen thus far in the PEL 92 drilling programme Marino-1 is anticipated to spud in September 2009, immediately after the Chiton-1 well.

Marino-1 will be the second of a two-well exploration programme in PEL 91 by Drillsearch and Beach. Drillsearch has previously announced in the Original Target’s Statement that the Chiton-1 (91-48) and Marino-1 (91-45) Prospects together have gross Unrisked Mean Recoverable Prospective Resources totalling 3.5 MMBBL oil and gross Unrisked High Recoverable Prospective Resources totalling 7.8 MMBBL oil. The primary objective of Marino-1 is the Namur Sandstone with additional secondary objectives in the Birkhead Formation, Hutton Sandstone and Poolowanna Formation. Additional technical information for the Marino-1 well has been provided to Drillsearch and will be reviewed in connection with the approval of the well.

Mr. Chris Carty, Chief Operating Officer of Drillsearch, said “The drilling of these two wells is the culmination of several years’ exploration effort in PEL91. These prospects have been recently matured to drillable status with the benefit of information gained from the 2008 Modiolus 3D Seismic Survey and we are very excited about their potential.” PEL 91 is well placed within the Western Flank Oil Fairway, where more than 40 oil Prospects have already been identified by the joint venture. Drillsearch would view success at either of the Chiton-1 or Marino-1 Prospects as the start of an intensive exploration

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effort in PEL 91 involving a number of wells being drilled. Funding for the Chiton-1 and Marino-1 wells has been previously budgeted in capital forecasts and will come from Drillsearch’s existing cash reserves.

ASIC lodgement

A copy of this Fourth Supplementary Target’s Statement was lodged with the Australian Securities & Investments Commission ( ASIC ) on 13 July 2009. Neither ASIC nor any of its officers takes any responsibility for the contents of this Fourth Supplementary Target’s Statement.

Defined terms

Unless the context requires otherwise, words defined in this Fourth Supplementary Target’s Statement have the same meaning as given to those terms in section 12.1 of the Original Target’s Statement.

Forward looking statements

This Fourth Supplementary Target’s Statement contains various forward-looking statements. Shareholders should note that those forward-looking statements are inherently subject to uncertainties in that they may be affected by a variety of known and unknown circumstances, variables and factors which could cause actual values or results, performance or achievements to differ materially from anticipated results, implied values, performance or achievements express or implied in those forwardlooking statements. Many of these risks are identified in the Original Target’s Statement. Drillsearch does not give any assurance that the anticipated results, performance or achievements expressed or implied in those forward-looking statements will be achieved. You should not place undue reliance on any forward-looking statements.

Competent Person Statement

Information on the Reserves and Resources in this Fourth Supplementary Target’s Statement is based on information compiled by Mr. Chris Carty, Chief Operating Officer and a full time employee of Drillsearch, who has given his consent as of the date of this Fourth Supplementary Target’s Statement to the inclusion of this statement and that information in the form and the context in which they appear in this Fourth Supplementary Target’s Statement.

Directors’ authorisation

This Fourth Supplementary Target’s Statement has been approved by a resolution passed by the Directors.

Date

This Fourth Supplementary Target’s Statement is dated 13 July 2009 which is the date on which it was lodged with ASIC.

SIGNED for and on behalf of Drillsearch by Jim McKerlie who is authorised to sign this Fourth Supplementary Target’s Statement on behalf of the Company:

Jim McKerlie Chairman Drillsearch Energy Limited

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