BEACH ENERGY LIMITED — M&A Activity 2011

Nov 7, 2011

ASX/MEDIA ANNOUNCEMENT

8 November 2011

The Manager Companies Announcements Office Australian Securities Exchange

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BEACH ENERGY LTD TAKEOVER OFFER – UPDATE – MORNING OF 8 NOVEMBER 2011

The Board of Adelaide Energy Ltd (ADE) wishes to further advise the market of the following matters with respect to the above:

1. It has engaged the services of Johnson Winter & Slattery as its legal advisers and RBC Capital Markets as its financial advisers to assist the Board in dealing with BPT’s takeover offer.

2. BPT’s ability to withdraw its offer at its present sub-50% shareholding level is limited. When or if BPT acquires a greater than 50% shareholding in ADE, it will have no ability to withdraw its offer until after the Closing Date of the Offer on 22 December 2011 (unless it obtains consent from ASIC).

3. ADE also notes that one of BPT’s stated intentions is to “ review the benefits and the suitability of ADE remaining listed on ASX having regard to the Listing Rules and the additional corporate and compliance costs ”. ADE wishes to advise shareholders that any such de-listing of ADE could only occur after the close of BPT’s offer and with the approval of the ASX.

4. The ADE Board therefore recommends that shareholders take no action at this time. Any shareholder who disposes of its shares now will not be entitled to any increase in the offer price that BPT, or a third party, may elect to make.

Commenting on the recent events, Mr Carl Dorsch said “ The Board is committed to getting the best outcome for all shareholders. ADE’s balance sheet is strong and it has always been able to meet all the funding requirements of the Nappamerri Trough exploration program. Beach’s offer (making conservative assumptions about the value of the rest of our portfolio), puts a value on our Nappamerri Trough assets of only around $600/acre, which we consider to be low in the light of the massive gas potential of this acreage. ”

For further information contact: Carl Dorsch Neil Young Managing Director Chief Commercial Officer Adelaide Energy Limited Adelaide Energy Limited Mob: 0400 508 088 Mob : 0417 850 245 c.dorsch@adelaideenergy.com.au neil.young@adelaideenergy.com.au

ASX Code : ADE

Registered Office Level 5, 70 Pirie Street, Adelaide SA 5000 www.adelaideenergy.com.au t +61 8 8228 5207 f +61 8 8228 3235 ABN 43 116 256 823