OEX.L Regulatory News (OEX)

10 Dec 2009 08:10

10 December, 2009

TIMOR SEA DRILLING UPDATE - LORE-1 well

Oilex Ltd advises that after finishing on the Lore-1 well, the Songa Mercur rig will move to the Lolotoe prospect, the second well of a 2 well program in the Timor Sea contract area JPDA 06-103.

Time of report update: 12.00 (WST) on 10 December 2009 Status: Preparing to plug and abandon Lore-1 Operations: * Lore-1 spudded at 13:15 (WST) on 20 November 2009 * 30" surface casing set at 428 metres * 171/2" hole drilled to 2,340 metres * 133/8" casing set at 2,334 metres * Drilled 121/4" hole with TD of 3,581 metres at 04:15 (WST) on 7 December 2009 * Conducted initial wire line log program * Complete wire line log program 10 December 2009 Forward plan Plug and abandon Lore-1

Actual total depth (TD): 3,581 metres

All depths refer to depth below rig rotary table

The Lore-1 wireline logging program has now been completed and confirms that there are no zones of significant movable hydrocarbons in the well. After the plug and abandonment operations are complete the rig will mobilise to the Lolotoe well location.

The Lolotoe prospect is a robust 3 way dip faulted anticline having about 300 metres of vertical relief. The prospect is targeting a mean prospective oil resource of 90 million barrels (100% basis) in the primary objective Elang/ Plover formations. The water depth at the proposed well location is 105 metres.

The Joint Venture participating interests in JPDA 06-103 are:

Joint Venture Party Participating Interest Oilex (JPDA 06-103) Ltd (Operator) 10% Videocon JPDA 06-103 Limited 25%(1) GSPC (JPDA) Ltd 25%(1) Bharat PetroResources JPDA Limited 25%(1) Japan Energy E&P JPDA Pty Ltd 15%

(1) Pan Pacific Petroleum (JPDA 06-103) Pty Ltd has recently signed conditional farmin deals with Videocon JPDA 06-103 Limited, Bharat PetroResources JPDA Ltd and GSPC (JPDA) Ltd to acquire a 15% participating interest in JPDA 06-103.

Yours sincerely,B. H. McCarthyManaging Director

For further information, please contact:

Ray Barnes Technical Director, Oilex Ltd Tel. +61 8 9485 3200 (Western Australia)

Archie Berens Director Pelham Public Relations Tel. +44 20 7337 1509 (United Kingdom)

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 30years 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 37years 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

ABN 50 078 652 632 Level 2, 50 Kings Park Road West Perth WA 6005 Australia, PO Box 588 West Perth

WA 6872 Australia Telephone: (+61 8) 9485 3200 Facsimile: (+61 8) 9485 3290 Email: oilex@oilex.com.au Web: www.oilex.com.au