BEACH ENERGY LIMITED — M&A Activity 2009

May 14, 2009

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15 May 2009

Dear Shareholder,

Beach Petroleum Limited Takeover Bid Appointment of Advisors

On 5 May 2009 Drillsearch Energy Limited (“Drillsearch” or the “Company”) received notice of an unsolicited conditional off-market takeover bid (“Offer”) from Beach Petroleum Limited (“Beach”). The Offer comprises scrip consideration whereby Drillsearch shareholders would receive 1 Beach share for every 27 Drillsearch shares. At current market prices for Beach shares, the Offer values Drillsearch shares at approximately 3.0 cents per share. The Company understands it will receive the Bidder’s Statement from Beach shortly.

Drillsearch’s Board of Directors recommends that Drillsearch shareholders TAKE NO ACTION with regard to their shareholding, until the Board has provided shareholders with Drillsearch’s Target’s Statement. The Target’s Statement will include details of the Board’s recommendation in relation to the Offer.

The Company is pleased to advise the appointment of TC Corporate Pty Limited as corporate and financial advisor and Deacons as legal advisor to the Drillsearch takeover advisory team. Both advisors have substantial experience in takeover defence matters and have previously worked together successfully.

The Board is united to ensure that the interests of Drillsearch shareholders are protected and that shareholder value is maximised. Additionally, the Company expects to make an announcement to the market next week with regard to the appointment of a new Managing Director.

Yours sincerely,

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Peter Simpson Executive Chairman

For further information please contact:

TC Corporate

Phone (02) 9377 1555 Robert Fraser Keir Semmens Richard Amland

Deacons Shaun Clyne James Stewart