BEACH ENERGY LIMITED — M&A Activity 2009

May 26, 2009

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Wednesday 27 May 2009

Ref: #063/09

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

Dear Sir,

ANNOUNCEMENT TO ASX

TAKEOVER OFFER FOR DRILLSEARCH ENERGY LTD

Beach Petroleum Limited (Beach) notes that ASIC has granted an exemption from section 650C(2) of the Corporations Act 2001 (Cth) to permit Drillsearch Energy Limited (Drillsearch) to extend the offer period under its takeover bid for shares in 3D Oil Limited (3D Oil) to 7.00pm (Sydney time) on 9 June 2009.

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.

Yours sincerely,

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Reg Nelson

Managing Director, FAusIMM

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