OEX.L Regulatory News (OEX)

18 Jan 2012 10:59

18 January 2012

Cambay-76H Well Operations Update

Further to its release of 3 January 2011, Oilex Ltd provides the following update on operations to recover the stuck milling assembly from the Cambay-76H horizontal well in the Cambay Field, onshore Gujarat, India.

Previously:

* 246 metres of coiled tubing had been recovered leaving an estimated 123 metres of coiled tubing and the milling assembly (12 metres) remaining to be recovered. * Before these retrieval operations could be completed, high bottom hole pressure conditions and an influx of gas and fracture stimulation fluids made it necessary to undertake well control operations to stabilise the well. * Additional equipment and chemicals were mobilized to counter the abnormal pressure in the well bore.

While a reduction in pressure has been recorded, the well is continuing to flow thus preventing a resumption of the retrieval operations.

Subsequently, a re-interpretation of the post fracture pressure data has revealed that the reservoir pressure is higher than previously anticipated. Accordingly, the well control procedures are being reviewed and additional chemicals sourced to ensure that the well can be stabilised and remaining operations completed.

Further releases will be made upon completion of significant events.

The participating interests in the Cambay PSC are:

Joint Venture Party Participating Interest Oilex Ltd (Operator) 30% Oilex NL Holdings (India) Limited 15% Gujarat State Petroleum Corporation Ltd 55%

For further information, please contact:

Oilex Ltd +61 (0)8 9485 3200 (Western Australia) Bruce McCarthy Managing Director oilex@oilex.com.au Ben Clube Finance Director oilex@oilex.com.au Ambrian Partners Limited (Nominated Adviser and AIM Broker) Matthew Einhorn +44 (0) 20 7634 4860 (UK) matt.einhorn@ambrian.com Anthony Rowland +44 (0) 20 7634 4858 (UK) anthony.rowland@ambrian.com Read Corporate Nicholas Read +61 (0)8 9388 1474 (Western Australia) nicholas@readcorporate.com.au Tavistock Communications +44 (0)207 920 3150 (UK) Ed Portman +44 (0)7733 363 501 (UK) eportman@tavistock.co.uk Paul Youens +44 (0)7843 260 623 (UK) pyouens@tavistock.co.uk

This document may include forward-looking statements. Forward-looking statements include, but are not necessarily limited to, statements concerning Oilex Ltd's planned exploration program and other statements that are not historic facts. When used in this document, the words such as "could", "plan", "estimate" "expect", "intend", "may", "potential", "should" and similar expressions are forward-looking statements. Although Oilex Ltd believes that its expectations reflected in these statements are reasonable, such statements involve risks and uncertainties, and no assurance can be given that actual results will be consistent with these forward-looking statements.