BEACH ENERGY LIMITED — M&A Activity 2009

May 26, 2009

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3D Oil Limited Level 5, 164 Flinders Lane Melbourne VIC 3000 Tel: +61 3 9650 9866 Fax: +61 3 9639 1960 www.3doil.com.au

ASX Release

27 May 2009

Drillsearch’s Fractures Reinforce High Risk

3D Oil Limited ( 3D Oil ) notes the ASX announcement that the offer from Drillsearch Energy Limited ( Drillsearch ) that was due to lapse yesterday has been extended by two weeks to Tuesday, 9 June 2009. This extension was granted by the Australian Securities and Investment Commission as a result of selfadmitted procedural errors by or on behalf of Drillsearch in the despatch of its Bidder’s Statement to certain 3D Oil shareholders.

3D Oil also notes the announcement by Drillsearch yesterday that it continues to face an uncertain future with its Executive Chairman retiring on 15 June 2009, the identities of all ongoing Drillsearch non-executive directors being unknown, and an ongoing dispute regarding the board to be the subject of a shareholders’ meeting in July.

3D Oil also notes the announcement by Beach Petroleum Limited ( Beach ) today which states “ Beach wishes to clarify that should Drillsearch issue shares under its takeover bid for 3D Oil, this will trigger a defeating condition in respect of Beach’s conditional takeover offer for Drillsearch. Beach has no present intention of waiving this defeating condition. Such issue of shares by Drillsearch will mean that Beach’s conditional takeover offer for Drillsearch will not be consummated. ”

Accepting Drillsearch's offer for 3D Oil is high risk. Beach has stated it will walk away if the Drillsearch offer for 3D Oil proceeds. 3D Oil shareholders will then be stuck in Drillsearch without the benefit of "double dipping" by accepting the Beach offer. The Drillsearch share price is then likely to fall, recognising that Beach's offer for Drillsearch was at a 50% premium to the Drillsearch 3 month volume weighted average price prior to the date the offer was announced.

3D Oil shareholders should be under no misconceptions:

1. Drillsearch’s hostile and conditional share offer continues not to be in the best interests of 3D Oil shareholders, and Drillsearch continues to act in an inconsistent and confused manner.

2. Drillsearch’s offer remains conditional on a minimum of 50.1% acceptances by 3D Oil shareholders and it currently has only 31.4%.

The Board of 3D Oil continues to unanimously recommend that all shareholders REJECT the Drillsearch offer . To REJECT the Drillsearch offer, 3D Oil shareholders are advised to take no action in response to communications from Drillsearch and not to complete any acceptance forms provided by Drillsearch.

Any 3D Oil shareholders who have accepted the Drillsearch offer can withdraw their acceptance by giving notice to Drillsearch .

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For further information, please contact:

Noel Newell Craig Jensz Managing Director Executive Director 3D Oil Limited Gresham Advisory Partners Limited T (03) 9650 9866 T (03) 9664 0372

Ian Howarth Senior account director Farrington National T (03) 9223 2465/ M 0407 822 319