Oilex Regulatory News (OEX)

QUARTERLY REPORT TO SHAREHOLDERS 31 MARCH 2010

Summary
India

* Increased focus on India with Managing Director relocated in country

* Cambay Joint Venture approves further exploration and appraisal drilling

activity

* Detailed technical studies progressing to evaluate Cambay tight gas
reservoirs

* Operations continue to be cash flow positive

WA-388P (North West Shelf, Australia)

* Seismic processing studies substantially completed

* Potential drilling decision anticipated by July

* Woodside farm in announced on adjacent Cue Energy block (WA-389P)

New Ventures

* Opportunities being pursued. Focus areas are South East Asia and India

JPDA 06-103 (Timor Sea)

* Technical studies continuing to assess Lor©-1 and Lolotoe-1 well results

* Drilling campaign completed within budget

West Kampar (Indonesia)

* Resolution to Joint Venture dispute being pursued

* Awaiting decision from ICC Tribunal on Arbitration to recover monies from

Operator's parent company

Corporate

* Oilex retained A$18.2 million cash at the end of the Quarter with no
corporate debt

* Management team and costs restructured

Overview

During the Quarter Oilex increased its focus on India. Independent technical studies were initiated to evaluate the Cambay low permeability Eocene reservoirs that tested oil and gas in previously drilled wells. The Cambay Joint Venture has agreed to further drilling to evaluate the gas and oil potential of the Eocene and other reservoirs.

During the Quarter Oilex increased its New Ventures efforts as part of its strategy to strengthen its asset portfolio.

In Australia, 3D seismic processing studies were substantially completed on its WA-388P block, offshore Western Australia. A potential drilling decision is anticipated by July.

Oilex continues to pursue a resolution to the West Kampar PSC Joint Venture dispute. Oilex is awaiting a decision from the ICC Tribunal following the completion of the Arbitration hearing in February 2010 in which Oilex is seeking to recover monies from the Operator's parent company.

Oilex completed drilling the second of the exploration wells in the Timor Sea
JPDA 06-103 contract area. Studies are now being carried out to assess the
results from the two wells and the implications for prospectivity and selection
of future drilling targets. There remain several undrilled structures with
potential to host significant oil reserves.
The company's cash position remains strong and India production continues to
generate positive cash flows. During the quarter, the Perth based organisation
was restructured with an increased focus on India and South East Asia.

OPERATIONS REVIEW

CAMBAY FIELD, Gujarat, India

(Oilex Operator - 45%)

* Oilex increased its focus and presence in India. Bruce McCarthy, Oilex's

Managing Director, who has over 15 years experience working in India has

relocated in country to manage Oilex's assets and growth in India.

* A USA based consulting firm specialising in tight gas was commissioned to

perform technical studies to evaluate Cambay's low permeability Eocene
reservoirs. The consultant is analysing existing Cambay well data by
applying tight gas interpretation techniques.

* Reprocessing of Cambay 3D seismic data was initiated. The 3D data covers

the whole Cambay block and the results are expected to provide further

information on the Eocene tight gas reservoirs and the OSII interval in the

eastern part of the Cambay block which has untapped gas potential.

* During the Quarter, the Joint Venture agreed to undertake further gas
exploration and appraisal drilling in the Cambay field.

* Total net production from the Cambay, Bhandut and Sabarmati Fields was
2,707 barrels of oil for the Quarter (Oilex share).

* Oil production from the Miocene Basal Sand (MBS) in the Cambay Field
continues to decline from the Cambay-74 and Cambay-64 wells.

WA-388P, Australia
(Oilex Operator - 14%)

* Initial results of seismic interpretation are encouraging with possible

direct hydrocarbon indicators evident.

* Seismic processing studies of 3D seismic data is substantially complete and

final interpretation is ongoing.

* Finalising preparation of a portfolio of prospects and leads with a
decision by the Joint Venture as to whether to enter the next phase and
commit to drilling a well being anticipated by July.

* After Quarter end, Cue Energy announced on 27 April that Woodside Energy

Ltd has farmed into its 100% interest WA-389P permit with Woodside

acquiring a 65% permit interest and operatorship. WA-389P is located

immediately to the east of Oilex's WA-388P block.

New Ventures

* Oilex is seeking to strengthen its asset portfolio and is largely focussing

its new ventures effort in South East Asia and India.

* A number of potential opportunities are currently being evaluated.

JPDA 06-103, TIMOR SEA
(Oilex Operator - 10%)

* The JPDA 06-103 Joint Venture drilled the Lor©-1 and Lolotoe-1 wells, which

were the first 2 wells of the PSC's work program commitment. Neither well

encountered commercial hydrocarbon zones. The wells were completed within

budget and with no HS&E incidents.

* Under the farm-out agreement entered into between Oilex and Japan Energy E&

P JPDA Pty Ltd, a subsidiary of Japan Energy Corporation, Oilex was carried

for most of its 10% share of costs associated with the Lor©-1 and Lolotoe-1

wells. Oilex was also reimbursed for some of its past expenditures.

* The Lor©-1 and Lolotoe-1 well data are now being integrated with existing

data and studies are underway to understand the absence of oil in the
wells, the implications for prospectivity and the selection of future
drilling targets.

* There remain several undrilled structures in the JPDA 06-103 contract area

with potential to host significant oil reserves. The contract area is

located near to a number of existing producing oil fields further to the

west, as well as Eni's Kitan oil discovery.

West Kampar PSC, Central Sumatra

(Oilex - 45% + further 22.5% secured*)

* Oilex's investment in this Production Sharing Contract (PSC) is currently

on hold due to the failure of the Operator (PT Sumatera Persada Energi -

SPE) to pursue the approved work program, as well as non-compliance with

other obligations.

* Oilex's priorities for this asset remain to:

1. Recover over US$4.6 million owed to Oilex by SPE by enforcement of the

security held (refer below for status of the Arbitration against the

operator's parent company guarantor, PT Asiabumi Petroleo).

2. Ensure the transfer of operatorship to Oilex or an acceptable third party.

3. Resume the seismic and drilling work program.

4. Obtain approval of BPMigas, the Indonesian regulator, for development of

the Pendalian oil field.

* The ICC Arbitration hearing initiated by Oilex against the operator's

parent company guarantor - PT Asiabumi Petroleo, commenced in Singapore on

25 January 2010 and was completed on 19 February 2010. Following closing

submissions filed in March 2010, Oilex is now awaiting the decision from

the ICC Tribunal on Oilex's claim seeking the recovery of over US$4.6

million.

* In the course of the Arbitration proceedings, Oilex was notified of a claim

filed on 25 January 2010 by SPE in an Indonesian court. Oilex has not been

served with the claim. Oilex understands that SPE is seeking damages from

Oilex for alleged defamation arising out of correspondence in November 2008

that provided BPMigas with information relating to SPE's performance as

operator. Oilex rejects the allegations in the claim and, if served, will

vigorously oppose them.

* SPE has informally advised Oilex that it may attempt to drill the

Pendalian-4 well. Such an activity would be a unilateral decision by SPE

and has not been presented to or approved by the Joint Venture.

*Under Oilex's security it is entitled to have assigned an additional 22.5% to
its holding through exercise of its rights under a Power of Attorney granted by
SPE, following the failure of SPE to repay funds due.

Block 56, Oman

(Oilex Operator - 25%)

* Oilex continued to review the options for Block 56 with the Joint Venture

including relinquishment.

* Oilex's attempts to renegotiate commercial terms for Block 56 with the
Omani Ministry of Oil and Gas on behalf of the Joint Venture were not
successful.

Corporate

* Oilex retained A$18.2 million cash at the end of the Quarter with no

corporate debt

* Net operating and investing cash outflows for the Quarter were $0.7 million

* 5,650,000 unlisted options lapsed during the Quarter

* Management team and costs restructured for future focus in India, South
East Asia and Australia

Safety, Health and environment

No lost time incidents were recorded in Oilex's operational areas including the
JPDA offshore drilling program and India operations during the Quarter.
Cumulative total man hours worked in India since the last LTI (April 2008) is
768,367.

Oilex regularly updates its website at www.oilex.com.au

For and on behalf of the Board

B. H. McCarthy
Managing Director
29 April 2010
The information in this report has been compiled by the Managing Director of
Oilex Ltd, Bruce McCarthy B.Sc. (Hons) PhD (Geology) who has over 30 years
experience in petroleum geology. The estimates of hydrocarbons in place were
reviewed by Ray Barnes B.Sc. (Hons), the Technical Director of Oilex Ltd who
has over 37 years experience in petroleum geology and is a member of the AAPG.
Mr Barnes reviewed this announcement and consents to the inclusion of the
estimated hydrocarbons in place in the form and context in which they appear.
The resource estimates contained in this report are in accordance with the
standard definitions set out by the Society of Petroleum Engineers, Petroleum
Resources Management System, 2007. Further information is available at
www.spe.org.

Oilex's nominated advisor in relation to the AIM market is RFC Corporate Finance Ltd, contact: Stuart Laing, stuartl@rfc.com.au

CORPORATE DETAILS

Board of Directors Share Registry

Max D.J. Cozijn Non-Executive Security Transfer Registrars Pty Ltd
Chairman
770 Canning Highway
Bruce McCarthy Managing Director
Applecross WA 6153, Australia
Ray Barnes Technical Director
Telephone: +61 8 9315 2333
Ben Clube Finance Director
Facsimile: +61 8 9315 2233
Laxmi Bhandari Non-Executive
Director Email:
registrar@securitytransfer.com.au
Ron Miller Non-Executive
Director

Capital Structure Stock Exchange Listing

Ordinary Shares 220,074,885 Australian Stock Exchange Code: OEX

Unlisted Options 24,325,000 AIM Market of London Stock Exchange
Code: OEX
Unlisted Performance Rights 555,000

LIST OF ABBREVIATIONS AND DEFINITIONS USED HEREIN

Associated Gas Natural gas found in contact with or dissolved in crude oil in
the reservoir. It can be further categorized as Gas-Cap Gas or
Solution Gas.

BOPD Barrels of oil per day

HS&E Health, Safety & Environment referring to all of the issues
that relate to operational performance in a manner that is
safe for personnel and the local environment

MCF/DAY thousand standard cubic feet (of gas) per day

MMCF/DAY million standard cubic feet (of gas) per day

MMSTBO million stock tank barrels of oil (recoverable)

MMSTBOIP million stock tank barrels of oil in place

Prospective Those quantities of petroleum which are estimated, as of a
Resources given date, to be potentially recoverable from undiscovered
accumulations

SCF/BBL standard cubic feet (of gas) per barrel (of oil)
Permit schedule

PERMIT JOINT VENTURE PARTIES EQUITY % OPERATOR
BASIN/STATE/COUNTRY
Cambay Field PSC
Cambay / Gujarat / India

Oilex Ltd 30.0 Oilex Ltd

Oilex NL Holdings (India) 15.0
Limited

Gujarat State Petroleum Corp. 55.0
Ltd

Bhandut Field PSC
Cambay / Gujarat / India
Oilex NL Holdings
(India) Limited
Oilex NL Holdings (India) 40.0
Limited

Gujarat State Petroleum Corp. 60.0
Ltd

Sabarmati Field PSC
Cambay / Gujarat / India
Oilex NL Holdings
(India) Limited
Oilex NL Holdings (India) 40.0
Limited

Gujarat State Petroleum Corp. 60.0
Ltd

Block 56 EPSA
South Oman / Oman
Oilex Oman Limited
Oilex Oman Limited 25.0

GAIL (India) Limited 25.0

Videocon Oman 56 Limited 25.0

Bharat Petroresources Ltd 12.5

Hindustan Petroleum Corp Ltd 12.5

West Kampar PSC

Central Sumatra / Sumatra/ Indonesia

PT Sumatera Persada Energi
Oilex (West Kampar) Limited 67.5 (1)

PT Sumatera Persada Energi 32.5
JPDA 06-103 PSC

Flamingo / Joint Petroleum Development Area / Timor-Leste & Australia

Oilex (JPDA 06-103) Ltd
Oilex (JPDA 06-103) Ltd 10.0

Japan Energy E&P JPDA Pty Ltd 15.0

GSPC (JPDA) Limited 20.0 (2)

Videocon JPDA 06-103 Limited 20.0 (2)

Bharat Petroresources JPDA Ltd 20.0 (2)

Pan Pacific Petroleum (JPDA 15.0 (2)
06-103) Pty Ltd
WA-388-P
Carnarvon / WA / Australia

Oilex Ltd
Oilex Ltd 14.0

Gujarat State Petroleum Corp Ltd 14.0

Videocon Industries Ltd 14.0

Bharat Petroresources Ltd 14.0

Hindustan Petroleum Corp Ltd 14.0

Sasol Petroleum Australia Ltd 30.0

(1) Oilex is entitled to the assignment of the additional 22.5% to its 45% holding, through exercise of its rights under a Power of Attorney granted by SPE following the failure by SPE to repay funds due to Oilex.

(2) Pan Pacific Petroleum (JPDA 06-103) on 19th February 2010 acquired a 15% participating interest via a farmin arrangement with Videocon JPDA 06-103 Limited, Bharat PetroResources JPDA Ltd and GSPC (JPDA) Ltd.

Listing Rule 5.3
Appendix 5B
Mining Exploration Entity Quarterly Report

Introduced 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98, 30/9/2001.

Name of entity

OILEX LTD
ABN Quarter ended ("current
quarter")

50 078 652 632 31 MARCH 2010

1 Consolidated statement of cash flows

Cash flows related to operating activities Current quarter Year to date

$A'000 (9 months)
$A'000

1.1 Receipts from product sales and 305 1,091
related debtors

1.2 Payments for (a) exploration and (712) (30)
evaluation

(b) development - (255)

(c) production (115) (428)

(d) administration (net) (274) (1,268)

1.3 Dividends received - -

1.4 Interest and other items of a similar 69 113
nature received

1.5 Interest and other costs of finance - -
paid

1.6 Income taxes paid - -

1.7 Other (provide details if material) - -

Net Operating Cash Flows (727) (777)

Cash flows related to investing activities

1.8 Payment for purchases of: (a) -

-
prospects
- -
(b) equity investments
(10)

(129)

(c) other fixed assets

1.9 Proceeds from sale of: (a) prospects -

-

(b) equity investments -

-

(c) other fixed assets -

29

1.10 Loans to other entities -

-

1.11 Loans repaid by other entities -

29

1.12 Other (provide details if material) -

-

Net investing cash flows (10)

(71)

1.13 Total operating and investing cash (737)

(848)

flows (carried forward)
1.13 Total operating and investing cash (737) (848)
flows (brought forward)

Cash flows related to financing
activities

1.14 Proceeds from issues of shares, - 9,430
options, etc

1.15 Proceeds from sale of forfeited shares -

-

1.16 Proceeds from borrowings (net) -

-

1.17 Repayment of borrowings -

-

1.18 Dividends paid - -

1.19 Other (provide details if material) -

-

Net financing cash flows -

9,430

Net increase (decrease) in cash held (737)

8,582

1.20 Cash at beginning of quarter/year to 19,154 10,506
date

1.21 Exchange rate adjustments to item 1.20 (195) (866)

1.22 Cash at end of quarter 18,222 18,222
Payments to directors of the entity and associates of the Current quarter
directors
$A'000

Payments to related entities of the entity and associates of

the related entities

1.23 Aggregate amount of payments to the parties included

306
in item 1.2

1.24 Aggregate amount of loans to the parties included in

item 1.10

1.25 Explanation necessary for an understanding of the transactions

2 Non-cash financing and investing activities

2.1 Details of financing and investing transactions which have had a

material effect on consolidated assets and liabilities but did not
involve cash flows

N/A

2.2 Details of outlays made by other entities to establish or increase their

share in projects in which the reporting entity has an interest

N/A
3 Financing facilities available Amount available Amount used

Add notes as necessary for an $A'000 $A'000
understanding of the position.

3.1 Loan facilities - -

3.2 Credit standby arrangements - -
4 Estimated cash outflows for next quarter $A'000

4.1 Exploration and evaluation 900

4.2 Development -

Total 900
5 Reconciliation of cash

Reconciliation of cash at the end of the Current quarter Previous quarter quarter (as shown in the consolidated

statement of cash flows) to the related $A'000 $A'000
items in the accounts is as follows.

5.1 Cash on hand and at bank 10,986 11,944

5.2 Deposits at call 7,236 7,210

5.3 Bank overdraft - -

5.4 Other (provide details) - -

Total: cash at end of quarter 18,222

19,154

(item 1.22)
6 Changes in interests in mining tenements

Tenement Nature of interest Interest Interest
reference at at end of
(note (2)) beginning quarter
of quarter

6.1 Interests in mining Refer to Permit
tenements Schedule in Quarterly
relinquished, Report
reduced or lapsed

6.2 Interests in mining Refer to Permit
tenements acquired Schedule in Quarterly
or increased Report
7 Issued and quoted securities at end of current quarter

Description includes rate of interest and any redemption or conversion
rights together with prices and dates.

Total Number Issue price Amount paid
number quoted per up per
security security

7.1 Preference +securities - - - -
(description)

7.2 Changes during quarter - - - -

(a) Increases through
issues

(b) Decreases through returns of capital,
buy-backs, redemptions

7.3 +Ordinary securities 220,074,885 220,074,885 Various -

7.4 Changes during quarter - -

(a) Increases through - -
issues (options
exercised)

(b) Decreases through
returns of capital,
buy-backs

7.5 +Convertible debt - - - -
securities
(description)

7.6 Changes during quarter - - - -

(a) Increases through
issues

(b) Decreases through
securities matured,
converted

7.7 Options Exercise Expiry date
price

350,000 - $1.60 30/04/2010

350,000 - $2.10 30/04/2010

775,000 - $0.90 31/07/2010

500,000 - $2.00 31/10/2010

400,000 - $2.50 31/01/2011

2,500,000 - $2.00 31/03/2011

300,000 - $2.25 31/03/2011

350,000 - $2.70 30/04/2011

900,000 - $1.75 30/06/2011

900,000 - $2.25 30/06/2011

2,000,000 - $0.30 30/06/2011

3,900,000 - $2.00 1/07/2011

3,900,000 - $2.50 1/07/2011

500,000 - $1.57 30/09/2011

300,000 - $2.75 31/03/2012

900,000 - $2.75 30/06/2012

3,250,000 - $0.30 01/07/2014

2,250,000 - $0.30 01/07/2014

Total 24,325,000

Issued and quoted securities at end of current quarter (cont'd)

Description includes rate of interest and any redemption or conversion rights together with prices and dates.

Total number Number Issue price Amount paid
quoted per security up per
security

2006 Performance Rights

40,000 Tranche 1 expire 1/07/
2011

2007 Performance Rights

120,000 Tranche 1 expire 1/07/
2012

Tranche 2 expire 1/07/
120,000 2012

Tranche 3 expire 1/07/
120,000 2012

2008 Performance Rights

84,000 Tranche 1 expire 1/07/
2013

Tranche 2 expire 1/07/
36,000 2013

Tranche 3 expire 1/07/
36,000 2013

Exercise Expiry Date
Price

7.8 Issued during - -
quarter

7.9 Exercised during
quarter

7.10 Expired during Exercise Expiry Date
quarter Price


450,000 - $1.40 31/01/2010

400,000 - $2.00 31/01/2010

4,500,000 - $0.50 31/03/2010

300,000 - $1.75 31/03/2010

Total 5,650,000

7.11 Debentures Nil Nil

(totals only)

7.12 Unsecured notes Nil Nil

(totals only)
Compliance statement

1 This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Act or other standards acceptable to ASX.

2 This statement does give a true and fair view of the matters disclosed.

Sign here: Date: 29 April 2010

(Director)

Print name: Ben Clube