BEACH ENERGY LIMITED — M&A Activity 2011

Nov 6, 2011

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MEDIA RELEASE

For Immediate Release – 7 November 2011 Ref. #128/11

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BEACH LAUNCHES CASH BID FOR ADELAIDE ENERGY

Beach Energy has launched an unconditional on-market takeover offer for Adelaide Energy.

The offer of $0.20 a share is a cash bid which closes on 22 December 2011.

Beach holds a 19.95% interest in Adelaide Energy.

Managing Director Reg Nelson said: “The offer is a logical next step for Beach, and it will remove the uncertainty of funding issues associated with Adelaide Energy for the Nappamerri Trough unconventional gas work program, as well as consolidating its strong landholding for this area in the Cooper Basin.”

“Importantly, this offer represents certainty for Adelaide Energy shareholders and I would like to remind Adelaide Energy shareholders that their company's market share price has never closed above its initial public offer price of $0.20 a share.”

Beach has flagged a large scale up of exploration and development activities for unconventional gas in licences PEL 218 in South Australia and ATP 855 in Queensland, where Adelaide Energy holds interests of 10% and 20% respectively in the relevant Permian section of the Nappamerri Trough. Gross capital commitments over the next 18 to 24 months are expected to be of the order of $200 million.

Mr Nelson said, "The capital demands on Adelaide Energy to fulfil its share of this program are very significant given its present cash position and there is a real risk of continued dilution for Adelaide Energy shareholders.

“Beach has been supportive of Adelaide Energy over the years and has provided a very large amount of its capital funding. However, we don't intend for this to continue."

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ASX Release

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The Beach on-market takeover offer of $0.20 a share values Adelaide Energy at $94 million. It represents a significant premium of 51.5% to the one month and three month volume weighted average price of Adelaide Energy shares.

Unless extended or withdrawn, the offer stands until the close of the ASX on 22 December 2011.

For more information contact:

Corporate
Reg Nelson	Beach Energy Ltd	08 8338 2833
Investor Relations
Chris Jamieson	Beach Energy Ltd	08 8338 2833
Media relations
Daryl Warren	WARREN (Public Relations) 0419 856 239

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