BEACH ENERGY LIMITED — M&A Activity 2009

Jun 2, 2009

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3 June 2009-06-03

Clarification with respect to certain shareholder correspondence

Drillsearch Energy Limited (" Drillsearch ") refers to the following documents sent to Drillsearch shareholders:

• Letter dated 27 May 2009 (set out using Drillsearch graphic design) from Mr Jim McKerlie, a director of Drillsearch; and

• Undated message from Mr Philip Kelso, which states that he is the former managing director of Drillsearch.

Drillsearch would like to confirm that these documents:

• are not correspondence from Drillsearch;

• reflect the personal views of their authors; and

• do not necessarily set out the views of Drillsearch or the other members of board of directors of Drillsearch.

In relation to Beach Petroleum Limited's off-market takeover bid for Drillsearch, the board of Drillsearch will be providing its recommendations in relation to the offer shortly and have recommended that shareholders TAKE NO ACTION with regard to their shareholding until the board provides shareholders with further advice.

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