Cambay - Gas Sales Agreeement signed

11 April 2013

Highlights:

·; Gas Sales Agreement signed with an Indian public limited company

·; Covers sales of Cambay-73 gas for two years once all approvals are secured

·; Demonstrates the excellent gas commercialisation opportunities in India

The Cambay Joint Venture, comprising Oilex Ltd ("Oilex", ASX: OEX, AIM: OEX) as Operator with 30% interest, Oilex NL Holdings (India) Limited ("Oilex Holdings") with 15% interest and Gujarat State Petroleum Corporation Ltd ("GSPC") with 55% interest, is pleased to announce the signing of a Gas Sales Agreement ("GSA") for off-spec gas production from the Cambay-73 well in the Cambay Basin, India.

The GSA covers gas sales for two years on a best endeavours basis, and has been submitted to the Gujarat State Government bodies (Directorate of Petroleum & GSPC) and the Government of India (Ministry of Petroleum and Natural Gas or "MoPNG") for endorsement. The contract price is confidential until such time as the GSA has been endorsed.

Production from Cambay-73 is expected to commence within two months of all Government approvals and gas sales will commence immediately thereafter. The initial gas volumes may be approximately 200 Mscf per day. In addition to the cash flow from gas sales, the production data from Cambay-73 should provide important data to support the premise of commercial production rates from the X and Y zones in the Eocene.

Acting Managing Director, Ron Miller, said, "The signing of the GSA is an important milestone for the Company as Oilex delivers production from our India assets. It also demonstrates the strong demand and excellent commercialisation opportunities for gas producers in the Cambay Basin which is ideally located in the industrialised state of Gujarat."

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