OEX.L Regulatory News (OEX)

17 Jan 2011 12:31

17 January 2011

WORK PROGRAMME VARIATION APPROVED ON TIMOR SEA BLOCK

Summary

* Fourth commitment well on block to be at discretion of Joint Venture. * Joint Venture may relinquish block if the third well, to be drilled before January 2012, is unsuccessful. * Infill 3D seismic survey to be conducted over part of Tutuala Lead in northern part of JPDA block 06-103.

Oilex Ltd advises that the Autoridade Nacional Do Petroleo (ANP), the Designated Authority for the Joint Petroleum Development Area (JPDA) in the Timor Sea has approved the JPDA 06-103 Joint Venture's proposal to vary the Production Sharing Contract (PSC) work programme. Under the approved variation the decision to drill the fourth commitment well on the JPDA 06-103 PSC will be at the discretion of the Operator if the third well is unsuccessful. The ANP has also agreed that the PSC may be relinquished if the Operator and the Joint Venture partners decide not to proceed with any further exploration after the third well.

The Joint Venture had proposed that the work programme be varied in this way and that a further 140 square kilometre 3D seismic survey be conducted over a part of the Tutuala Lead in the northern part of the contract area to infill a gap between existing 3D survey data coverage. The location of the third well will be finalised after the acquisition and interpretation of the new 3D seismic data.

The ANP has also agreed to an extension to the exploration term with the primary term now ending on 16 January 2012.

Oilex's Managing Director, Dr Bruce McCarthy, said, "Oilex greatly appreciates the assistance and cooperation of the ANP and looks forward to completing the new work programme in the prospective, albeit higher risk northern part of the contract area. The Tutuala Lead, subject to results of the infill 3D seismic survey, has the potential to contain large volumes of oil. The conclusion of the discussions with ANP and the Joint Venture regarding the remaining PSC work programme reflect a practical and pragmatic approach by all parties."

The participating interests in the JPDA 06-103 PSC are:

Joint Venture Party Participating Interest Oilex (JPDA 06-103) Ltd (Operator) 10% Global Energy Inc 20% GSPC (JPDA) Ltd 20% Bharat PetroResources JPDA Limited 20% Japan Energy E&P JPDA Pty Ltd 15% Pan Pacific Petroleum (JPDA 06-103) Pty Ltd 15%

Information in this report relating to hydrocarbon reserves or resources has been compiled by Mr Ray Barnes B.Sc.

(Hons), the Technical Director of Oilex Ltd who has over 37 year' experience in petroleum geology and is a member of

the AAPG. Mr Barnes 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.

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) +44 (0) 20 7634 4856 (UK)

Richard Swindells richard.swindells@ambrian.com

Read Corporate +61 (0)8 9388 1474 (Western Australia)

Nicholas Read nicholas@readcorporate.com.au

Tavistock Communications +44 (0)207 920 3150 (UK)

Paul Youens pyouens@tavistock.co.uk +44 (0)7843 260 623 (UK)

Jonathan Charles jcharles@tavistock.co.uk +44 (0)7791 892 509 (UK)