Beach Energy Limited (ASX:BPT) Launches Unconditional Cash Takeover for Adelaide Energy (ASX:ADE)

Adelaide, Nov 7, 2011 AEST (ABN Newswire) - Beach Energy Ltd (ASX:BPT) (PINK:BEPTF) ("Beach") announces an unconditional on-market cash offer of 20 cents per share ("Offer") for all of the issued and outstanding ordinary shares of Adelaide Energy Ltd (ASX:ADE) ("Adelaide Energy") that it does not already own. Beach currently owns 19.95% of Adelaide Energy.

Beach has instructed its broker, Macquarie, to purchase at the Offer price, every Adelaide Energy share which it does not already own and for sale during the Offer period, which commences from the date of this announcement to the close of trading on the Australian Securities Exchange ("ASX") on 22 December 2011, unless extended or withdrawn.

The Offer provides an opportunity for Adelaide Energy shareholders to receive a significant 51.5% premium to the one month and three month Volume Weighted Average Price ("VWAP") of A$0.132 per Adelaide Energy share.

Beach believes that the Offer is compelling as it will deliver Adelaide Energy shareholders that accept:

- The immediate certainty of cash, three days after their acceptance of the Offer;

- The avoidance of further dilution due to future funding and capital investment requirements;

- The potential to exit a relatively illiquid investment; and

- A significant premium to a share price that has not closed above its 20 cents per share listing price.

Beach Managing Director, Reg Nelson, said, "The takeover offer for Adelaide Energy represents a logical next step for Beach, and will remove ongoing funding concerns relating to Adelaide Energy for the Nappamerri Trough unconventional gas work program. It will consolidate Beach's landholding in the heart of the Cooper Basin where we are focusing our efforts on what is a significant shale and basin centred gas play."

"By making this offer, Beach is extending an opportunity for all Adelaide Energy shareholders to capture the underlying value of their investment ahead of significant funding requirements, as well as giving them an exit from what is an illiquid investment that has never closed above its listing price of 20 cents."

As at 7 November 2011, Beach has available cash balances of approximately A$100 million and a multi option financing facility of A$150 million, providing it with the ability to fund the Offer from existing cash reserves.

DETAILS OF THE OFFER

- The Offer is a cash offer of 20 cents and is unconditional

- The Offer can be accepted by instructing your broker to sell your shareholding to Beach through its broker for the Offer, Macquarie

- The Offer provides the opportunity to receive cash within three trading days from the date you instruct your broker to sell your Adelaide Energy shares at the Offer price

- The Offer represents a significant premium to the recent trading range of Adelaide Energy as depicted in the chart. (see link at the bottom of the release)

Beach has appointed Adelaide Equity Partners Ltd as Financial Adviser, Piper Alderman as Legal Adviser and Macquarie Equities Limited (AFSL# 237504) as Broker for the Offer.

Timetable

7 November 2011:
- Announcement of Offer
- Bidder's statement lodged with Adelaide Energy, ASIC and ASX
- Shares may be sold on market before the opening of the Offer

7 November to 22 December 2011
- Adelaide Energy shares may be sold to Beach on market

22 November 2011
- Opening Date of Offer

22 December 2011
- Closing Date of Offer (unless extended or withdrawn)

These dates may vary as permitted under the Corporations Act. Any changes to the above timetable will be notified on Beach's website www.beachenergy.com.au and announced to the ASX.

Overview of Beach Energy Ltd

Beach is a top 200 ASX listed oil and gas exploration and production company based in Adelaide, South Australia. It has interests in more than 300 exploration and production tenements mainly in Australia, Egypt, Tanzania and the USA. As at 30 June 2011, Beach had oil and gas reserves of 77 million barrels of oil equivalent (MMboe) and contingent resources of 583 MMboe.

For the complete Beach Energy announcement including the Bidder's Statement, please view:
http://media.abnnewswire.net/media/en/docs/ASX-BPT-185476.pdf

Contact

Corporate Reg Nelson Beach Energy Limited Tel: +61-8-8338-2833 Investor Relations Chris Jamieson Beach Energy Limited Tel: +61-8-8338-2833 Media Daryl Warren WARREN (Public Relations) Tel: +61-8-8239-0567