OEX.L Regulatory News (OEX)

28 October 2013

Cambay Drilling Update

· Critical casing ordered and delivery scheduled for early December

· Casing fulfils a recommendation of the Independent Engineering Report

· Bid evaluations for rig and fracture stimulation equipment nearing completion

Oilex Ltd (ASX: OEX, AIM: OEX, Oilex) is pleased to provide an update on the preparations for drilling Cambay-77H in its Cambay Tight Hydrocarbon Project. As indicated previously, the full suite of tender packages for all equipment, materials and services required for Cambay-77H have been issued and all the bid documents have been received from prospective bidders. Joint Venture representatives have completed technical evaluation of the following critical items:

· 4 ½ inch completion tubulars

· Drill Rig and Associated Services

Of these critical items, the commercial evaluation is now complete and approved by the Joint Venture for the 4 ½ inch completion tubulars. This critical item has been ordered with an expected delivery to the site during December 2013. Availability of these tubulars is crucial for compliance with the recommendations of the independent engineering review of Cambay-76H, announced during October 2012.

The quotations to supply the rig and associated services are currently being reviewed within the Joint Venture and the commercial evaluation will begin immediately follow endorsement by the technical team. Multiple bids have been received and based upon the technical submissions a number of rigs appear to be suitable for Cambay-77H. The evaluation of bids for the Fracture Services is progressing in parallel with the Drill Rig.

In relation to endorsement of the Gas Sales Agreement signed and announced in April 2013, the Government has recently informed the Joint Venture that a formal competitive tendering process is now required to demonstrate an arm's length price structure before endorsement of the GSA is granted. Competitive bids are due in late November 2013.

Managing Director of Oilex, Ron Miller, said

"We are confident that the tendering process is progressing and the selection of contractors, suppliers and vendors is being completed in a methodical fashion to mitigate risks as per the recommendation of the independent engineering report.

The focus is now on completion of the recommendation for the drilling rig and fracture stimulation equipment selection and we look forward to updating the market accordingly."

For further information, please contact:

Competent Person's Statement

Information in this report relating to hydrocarbon reserves or resources has been reviewed and checked by Mr Peter Bekkers B.Sc. (Hons), the Chief Geoscientist of Oilex Ltd who has over 15 years of experience in petroleum geology and is a member of the Society of Petroleum Engineers and AAPG. Mr Bekkers consents to the inclusion of the information in this report relating to hydrocarbon reserves and resources in the form and context in which it appears. 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.

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 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.