27th Apr 2006 07:18
OIEX NL Level 3, 50 Kings Park Road, West Perth WA 6005 Telephone: +61 8 9226 5577 Facsimile: +61 8 9226 2108 E-mail: [email protected] Web Site: www.oilex.com.au QUARTERLEY REPORT TO SHAREHOLDERS 31 MARCH 2006 HIGHLIGHTS * Indian Ministry of Petroleum & Natural Gas approved the assignment of 30% interest in Cambay Field onshore Gujarat to Oilex as Operator. * Oilex acquired additional 15% equity in Cambay Field and 40% in each of Bhandut and Sabarmati Fields onshore Gujarat, India for total cash of US$5.49 million payable when approval is received from the Government of India. * Range of 13 - 84 million barrels (29 million barrels best estimate) oil-in-place gross resource assessment for Cambay OS II reservoir horizon. * Drilling programme of 2-3 wells on Cambay Field planned to commence June 2006. * Oilex (25% and Operator) and Indian alliance group including Videocon, GAIL, Bharat Petroleum and HPC/Prize awarded Block 56 in Oman. * Indian companies Videocon and GSPC joined Oilex in farmin to EPP 27 with each party earning 20% equity interest and Great Artesian Oil & Gas Ltd holding 40%. * Arranged $5 million mezzanine financing facility with LinQ Resources Fund. * Oilex listed on AIM market in London in February 2006. * 1,297 barrels of oil produced in the quarter from Rookwood South-1 well and 565 barrels of oil from Donga-3 production test sold to Inland Oil Refinery. * Richard Paces recruited as Chief Operating Officer and Country Manager to be based in India. * Tony Beckett recruited as General Manager - Operations based in India.CORPORATE Board of Directors Principal & Registered Office DETAILS Max D.J. Cozijn Level 3, 50 Kings Park Road Non-Executive Chairman West Perth WA 6005, Australia Bruce McCarthy Managing Director Telephone: +61 8 9226 5577 Ray Barnes Facsimile: +61 8 9226 2108 Technical Director Email: Geoffrey Johnson [email protected] Non-Executive Director Website: www.oilex.com.au Capital Structure Share Registry Ordinary Shares 50,014,319 Security Transfer Registrars Pty Ltd Unlisted Options 21,030,534 770 Canning Highway Stock Exchange Listing Applecross WA 6153, Australia Telephone: +61 8 9315 2333 Australian Stock Exchange Facsimile: +61 8 9315 2233 ASX Code: OEX Email: [email protected] AIM Code: OEX OPERATIONS REVIEW INDIA CAMBAY FIELD, Gujarat State The Ministry of Petroleum & Natural Gas in New Delhi approved the assignment of 30% equity in Cambay Field to Oilex on 23 Oilex increased its March. The amendment to the Production Sharing Contract (PSC) isequity to 45% in now being finalised. Subsequent to end of quarter, Oilex Cambay Field in increased its stake in Cambay Field to 45% (see below) as part Gujarat. Oilex is of a transaction involving two other small fields. operator. Oilex is the nominated Operator for the joint venture (JV) and 2-3 wellsto be presented a revision of the current year work programme and drilled in Phase 1 budget to the JV in New Delhi on 12 April. The programme is programme starting subject to Management Committee approval and consists of two June. phases that are fundamentally separated for logistic reasons due to the monsoon season between mid June and October. In the first13-84 million phase, 2 firm and 1 contingent well are planned to be drilled onbarrels gross range monsoon pads starting early June. Concurrently, Oilex is of oil-in-place at investigating the possibility of acquiring a 3D seismic survey Oligocene OS-II over the western part of the block to commence late May and to reservoir. be completed during a 15-20 day gap before the monsoon. The second part of the survey will be acquired over the eastern half of the block after the monsoon. The advantage of this phased programme is that well and seismic data will be available for refining seismic coverage and well locations prior to the commencement of the second phase of work. Modern well data including wireline logs, formation pressure and fluid characteristics will be used to normalise the existing data set which has been digitised and correlated across all wells for which we have data. see figure at Oilex website www.oilex.com Figure 1 - Depth map of OS II sandstone reservoir, Western High Cambay Mapping completed to date is based on wireline correlations of notable stratigraphic markers and these maps have been used to pick the locations for the wells in the first phase of drilling. The structure of particular interest in the western part of the block is a north-south trending faulted anticline along which many old wells have produced oil and gas in relatively low volumes or have strong indications of oil and gas in good quality reservoirs. Reservoir rocks occur throughout the Tertiary section in the Eocene, Oligocene and Miocene and these intervals will be evaluated thoroughly by the first phase wells. RESOURCE ASSESSMENT - OSII HORIZON Resource Volume-in-place (gross) Low Estimate Best Estimate High Estimate OIL MMSTB 13 29 84 GAS BCF 15 34 112 CONDENSATE MMSTB 0.6 1.7 9 Figure 2 - Estimates of hydrocarbons in place calculated for the western high trend stratigraphic level OS II sandstones only The first estimates of hydrocarbons in place have been completed and additional work is ongoing to define with a higher level of confidence the characteristics of the reservoir and the fluid composition. The estimates are given for the Western High area (Figure 1) Oligocene OS-II sandstone only which is the primary objective horizon in the phase-I drilling programme. No estimates for other reservoir objectives have been completed at this point. The Cambay Field was discovered in 1957 and over 60 wells have been drilled on the block. The majority of the wells have been shut in for extended periods of time because of sand or water incursion or downhole equipment problems. A small number of wells are producing oil on an intermittent basis. Oilex has acquired BHANDUT, SABARMATI AND CAMBAY FIELDS, Gujarat additional 15% equity in Cambay Oilex has acquired an additional 15% interest in the Cambay Field and 40% in Field and 40% in each of Bhandut and Sabarmati Fields onshore each of Sabarmati Gujarat, subject to the approval of the Government of India. and Bhandut Fields Each of these fields is producing oil at low rates on an in Gujarat subject intermittent basis and they are anticipated to be good to Government candidates for re-development. approval. In all of these joint ventures, Oilex is the Operator and its co-venture party is Gujarat State Petroleum Corporation (GSPC). Oilex has received all approvals necessary for the initial farmin on GSPC and Niko for 30% equity in Cambay Field, subject to formal amendment of the Production Sharing Contract (PSC). Cambay, Bhandut and Sabarmati fields are located in one of the most prolific petroleum provinces onshore India close to existing pipeline and industrial infrastructure and with the purchase from Niko of the additional 15% equity in Cambay and the 40% participating interest in the Bhandut and Sabarmati PSC's, Oilex is well placed to develop a production base in Gujarat at the earliest opportunity [refer map attached]. Oilex will become the Operator under the existing PSC and Joint Operating Agreement and in consideration of the assignment by Niko of its interests and adjustment for Niko's share of the original farmin, Oilex will pay an amount of US$5.49 million that is due for payment when approval for the transaction by the Government of India is received. The fields were discovered and developed initially by Oil & Natural Gas Corporation (ONGC) of India. Hydrocarbons were found in Oligocene and Eocene sandstones and continued to be produced on an intermittent basis after the fields were acquired by the GSPC and Niko Joint Venture in 1995. Production from the fields has suffered because of sand and water influx and decline in reservoir pressure most likely due to formation damage. see figure at Oilex website www.oilex.com Figure 3 - Location Sabarmati, Bhandut and Cambay Fields, Gujarat OMAN BLOCK 56, onshore southern Oman [Oilex 25% and Operator] Oilex (Operator) and The Government of the Sultanate of Oman advised on 24 March 2006Indian JV parties that the consortium led by Oilex is to be awarded Block 56, awarded block 56. subject to signing an Exploration & Production Sharing Agreement. The award completes another element of the company's stated strategy of acquiring high quality exploration acreage in countries around the Indian Ocean rim in joint venture with its Indian alliance members. Block 56 was Oilex's first choice block and the highest rated of the blocks on offer. The block is located on the eastern flank of the South Oman Salt Basin and offers the opportunity for conventional structural traps in the western part of the block where oil and gas may be trapped along the eastern margin of the Salt Basin, one of the main oil producing basins in Oman. The blocks on offer in the recent bid round comprised three blocks on the eastern side and 2 blocks on the western side of the South Oman Salt Basin. The recognition of 20 structural leads and the possibility of an extension of the proven Ara salt playacross Block 56 justified a comprehensive work program set out in the Consortium's bid application. In Block 56, potential has been recognized for targets ranging from the Cambrian Buah formation to the Cretaceous Wasia group in areas where depth of burial is sufficient to mitigate the biodegradation of oil at the shallower levels. The density and quality of seismic coverage is insufficient to identify immediately drillable prospects and 2D and 3D seismic acquisition is a prominent component of the proposed work programme. The value of the work programme is estimated to be about A$10 million net to Oilex over the initial 3 year term. Drilling is expected to start early in 2007. see figure at Oilex website www.oilex.com Figure 4 - Map of Oman showing Block 56 in relation to the South Oman Salt Basin OTWAY BASIN, EPP 27 (earning 20% from Great Artesian Oil and Gas Ltd (GOG)) OFFSHORE SOUTH AUSTRALIA Oilex, Videocon Industries Limited ("Videocon"), Gujarat State Petroleum Corporation Limited ("GSPC") and GOG executed the Oilex completed farmin agreement formalising the arrangement by which Oilex and farmin agreement its Indian Joint Venture parties may earn a combined 60% workingwith Indian parties interest in permit EPP 27. Videocon is the oil and gas member of the major diversified Videocon group of companies and GSPC is a vertically integrated oil and gas company owned by the Government of the State of Gujarat. Each of the farminees is to pay 33.3% of the cost of a well and seismic programme, the latter at the discretion of the farminees, to earn 20% working interest in the permit. Under the terms of an original Letter Agreement between Oilex and Great Artesian, Oilex could earn a 60% interest in EPP 27 by funding the cost of an exploration well. GOG announced on 28 December 2005, that due to the lack of availability of a rig to undertake the drilling, it had been necessary to seek a suspension of the permit for up to 12 months, until 21 December 2006. The term of permit year 6 now ends on 24 February 2007. The new agreement between Oilex, Videocon and GSPC will see the farminees funding an exploration well at a location to be determined and additional work at their discretion. Once the well is drilled Oilex, Videocon and GSPC will each be entitled to a 20% interest in EPP 27 Oilex has completed a seismic interpretation of the existing data and confirmed leads in the southeastern sector of the block that appear to be less intensely faulted than the area in the northwest. The farminees have agreed to acquire additional 2D seismic to confirm potential drilling locations and that survey is anticipated to be completed in June. see figure at Oilex website www.oilex.com Figure 5 - Outline of proposed seismic survey AUSTRALIA ONSHORE ATP 608P Remainder Block [Oilex 48.125%] SURAT BASIN, No further work has been undertaken. QUEENSLAND ATP 608P Rookwood Block [Oilex 60.435%] 1,297 barrels of oil The first phase of the dump flood operation was undertaken in were produced during February and in light of perceived formation damage at the the March quarter Boxwood Sandstone reservoir level, the second phase of completion at that level was postponed until the completion of EROMANGA BASIN, further work. QUEENSLAND The current production rate from Rookwood South-1 well is approximately 14 barrels of oil based on 14 hours of pumping every 2-3 days. Reservoir pressure continues to decline at a rate conforming to prediction. 1,297 barrels of oil were produced to the end of the December quarter, with total cumulative oil production since December 2004 of 8,583 barrels to 31 March 2006. All of the oil produced is currently being sold to Inland Oil Refinery. ATP 805P [Oilex 42.5%] Donga-3 oil discovery was brought into production on a long term test in February. The objective of the test is to determine from the pressure decline curve and the production rate the potential reserve volume and the sustainable production rate. Results to date are being evaluated after the production rate declined during March. The average daily rate of production was 27 bopd. 565 barrels of oil have been produced from Donga-3. ATP 593P [Oilex 76%] No further work undertaken. ATP 574P [Oilex 57.5%] No further work undertaken. ATP 794P (Previously ATP 589P)[Oilex varying interests of 10% to 88%] No further work undertaken. Barcoo Junction Block [Oilex 88%] No further work undertaken. Barcoo Block [Oilex 40%] Bow has evaluated the eastern part of ATP 794P and considers that there is exploration potential in the Trinidad and Hobson's Gap areas where several large, relatively shallow (~1600 metres) untested four-way closures have been identified. In particular, the Banff prospect is a possible candidate for drilling later in 2006. ATP 548P [Oilex 11.35%] No further work was undertaken. ATP 545P [Oilex 45.5%] No further technical work was undertaken. ATP 677P- Application [Oilex 50%] Nothing to report. PERMITS Refer permit schedule attached hereto for the current permit positions. CORPORATE Oilex retains a CAPITAL STRUCTURE tight capital structure with 50 At 31 March 2006, Oilex has a total issued capital of 50,014,319 million shares on ordinary shares before the issue of shares to IHL (see below). issue In addition there is a total of 21,030,534 unlisted options Oilex restructures exercisable at prices of between $0.20 and $1.50 per share as its agreement with detailed in the Appendix 5B attached. IHL MEZZANINE FINANCE FACILITY Oilex recruits senior experienced A A$5 million mezzanine project finance facility on favourable personnel for terms has been negotiated with LinQ Corporate Pty Ltd to assist Indian operations Oilex in funding the development of its Indian production interests, including the drilling of the Cambay Field. At this Dual listing and early stage of Oilex's involvement in Cambay, the agreement with access to broad UK LinQ is a sound endorsement of the quality of the asset. As part investor base of this facility, 5 million unlisted options exercisable at 50 achieved with cents over a four-year term are to be issued, with a portion entry to AIM subject to shareholder approval. INDIA HYDROCARBONS LIMITED In April 2005, Oilex advised that it had entered into an agreement with India Hydrocarbons Limited (IHL) to assist it in pursuing oil and gas exploration and production opportunities in India. Since April 2005 IHL has successfully assisted Oilex in concluding a range of agreements with Indian companies including the Farmin Agreement in which Videocon and Gujarat State Petroleum Corporation joined Oilex in EPP 27; acquisition of the Cambay, Bhandut and Sabarmati Field interests onshore Gujarat from Niko and GSPC; the awarding of the Oman Block 56 in Joint Venture with 3 major Indian public sector companies and 1 major private company; forming the Joint Ventures with the Indian companies that participated with Oilex in Indian and Australian competitive bidding rounds; and completion of various Alliance Agreements and Memorandums of Understanding relating to the common pursuit of opportunities in Australia, India and elsewhere. Under the previous arrangement between Oilex and IHL, it was agreed that a special purpose Indian subsidiary of Oilex NL would be owned 10% by IHL and that all of Oilex's India related investments would be held through this vehicle. Currently Oilex has restructured its business such that these investments will be largely held directly by Oilex NL or its wholly owned subsidiaries based in Cyprus and, consequently, IHL has lost the opportunity to participate directly in these projects. To redress this situation, Oilex agreed with IHL to issue IHL or its nominee 5 million shares in Oilex NL at A$0.20 per share subject to obtaining shareholder approval. It is intended that these shares be allotted in two tranches of 2.5 million shares over 12 months and that the first tranche shares will be subject to a voluntary escrow for 12 months. EXECUTIVE APPOINTMENTS- INDIAN OPERATIONS Oilex has been successful in recruiting its first choice candidates for the critical management and operations positions in India. The company's objective has been to acquire the services of personnel who have relevant Indian operating and management experience for the development of its Indian Projects, with offices being established in New Delhi and at Baroda in the state of Gujarat. Rich Paces has been appointed Chief Operating Officer and Country Manager, India with effect from 5 May 2006 and will be based in New Delhi. Rich is a production engineer by background and has been involved in major development projects recently in Equatorial Guinea and previously in India including Command Petroleum and Cairn Energy. Rich has an excellent understanding of Indian Joint Ventures and is highly regarded for his integrity, diligence and management skills. Tony Beckett has been appointed General Manager Operations based in Baroda Gujarat. Tony was previously Drilling Manager for Cairn Energy during the very active early period of exploration drilling by Cairn offshore and onshore India. Tony is very highly regarded for his technical knowledge and skills in drilling and his wide experience in the industry gained over 30 years in many diverse international locations. Under the terms of contract for senior employees, Oilex offers incentive share options to employees and a total of 2,825,000 unlisted employee options (subject to obtaining shareholder approval) exercisable after certain qualifying periods of service ranging from 1 to 3 years at prices of 50, 65 and 90 cents, expiring 3 to 4 years from date of grant in one case and at prices of 45 and 55 cents, expiring 3 years from date of grant in the other case have been awarded to these employees. AIM LISTING- UK Oilex became a listed company on AIM in February. The AIM listing is intended to broaden Oilex's shareholder base and offer investors in the UK and European markets easier access to the Company's securities. The dual listing is expected to improve the Company's access to the UK Capital Markets for any capital raisings that may be required to develop its future oil and gas exploration and production activities in India and Australia. Oilex retains cash resources of $6.1 million as at 31 March 2006. Oilex regularly updates its website at www.oilex.com.auFor and on behalf of the BoardB. H. McCarthyManaging Director27 April 2006The information in this report has been compiled by the Managing Director ofOilex NL, Bruce McCarthy B.Sc. Hons. PhD (Geology) who has over 26 yearsexperience in the oil and gas exploration and production industry. Theestimates of hydrocarbons in place were prepared by Paul Robinson B.Sc. Hons.PhD (Geology), an independent consultant to Oilex NL who has over 25 yearsexperience in petroleum geology and resources estimation and is a member of theAAPG. The estimates were reviewed by Ray Barnes, the Technical Director ofOilex NL who has over 35 years experience in oil and gas exploration andproduction industry and is a member of the AAPG. Dr Robinson and Mr Barnes bothreviewed this announcement and consent to the inclusion of the estimatedhydrocarbons in place in the form and context in which they appear. Rule 5.3 PERMIT SCHEDULE Australian Permits at 31 March 2006: % PERMIT BASIN BLOCK NAME PARTIES OPERATOR HELD Oilex NL 57.50 (Seqoil Pty Ltd) (Note 2) Oilex ATP 574P Surat Victoria 30.00 NL Petroleum NL Bow Energy 12.50 Ltd Oilex NL 76.00 (Seqoil Pty Ltd) ATP 593P Surat Oilex NL Victoria 24.00 Petroleum NL Victoria 60.00 Petroleum NL Barcoo Victoria Petroleum NL Oilex NL 40.00 (Seqoil Pty Ltd) Icon Oil NL 60.00 Victoria 24.00 Petroleum Regleigh NL Icon Oil NL Oilex NL 16.00 (Seqoil Pty Ltd) Icon Oil NL 60.00 Victoria 24.00 Petroleum Springfield NL Icon Oil NL Oilex NL 16.00 (Seqoil Pty ATP 794P Ltd) Eromanga (Note 1) Oilex NL 80.00 Oilex NL 8.00 (Seqoil Pty Barcoo Junction Ltd) Oilex NL Victoria 12.00 Petroleum NL Icon Oil NL 75.00 Victoria 15.00 Petroleum Brightspot NL Icon Oil NL Oilex NL 10.00 (Seqoil Pty Ltd) Victoria 60.00 Petroleum NL Part 2 Victoria Petroleum NL Oilex NL 40.00 (Seqoil Pty Ltd) Oilex NL 60.435 (Seqoil Pty Ltd) Rookwood Victoria 29.69 Oilex NL Petroleum NL Private 9.875 Interests ATP 608P Surat Oilex NL 48.125 (Seqoil Pty Ltd) Victoria 24.00 Petroleum Remainder NL Oilex NL Bow Energy 20.00 Ltd Private 7.875 Interests Bow Energy 42.50 Ltd Oilex NL 42.50 ATP 805P Surat (Seqoil Pty Bow Energy Ltd Ltd) Victoria 15.00 Petroleum NL IOR 68.65 Exploration Pty Ltd ATP 548P Eromanga IOR Exploration Pty Ltd Netscald 20.00 Pty Ltd Oilex NL 11.35 Oilex NL 45.50 Roma 45.00 ATP 545P Eromanga Petroleum Roma Petroleum NL NL Private 9.50 Interests Oilex NL 60.00 (earning) EPP 27 Otway Great 40.00 Oilex NL Artesian Oil & Gas Ltd Oilex NL 50.00 ATP 677P Eromanga Challenge 50.00 Oilex NL Application Resources Ltd Oilex NL 55.00 ATP 797P Application Eromanga Roma 45.00 Oilex NL Petroleum NL Oilex NL 55.00 ATP 798P Eromanga Roma 45.00 Oilex NL Application Petroleum NL NOTE 1: ATP 794P (previously ATP589P) 2: Seqoil Pty Ltd is a wholly owned subsidiary of Oilex NL.Indian Permits at 31 March 2006, pending approval of Government of India: BLOCK % PERMIT STATE NAME PARTIES OPERATOR HELD Oilex NL (earning) 30.00 Cambay Oilex Field Gujarat Gujarat State 46.67 NL Petroleum Corp. Ltd Niko Resources Ltd 23.33 Rule 5.3Appendix 5BMining exploration entity quarterly reportIntroduced 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98, 30/9/2001.Name of entity OILEX NL ABN Quarter ended ("current quarter") 50 078 652 632 31 March 2006 Consolidated statement of cash flowsCash flows related to operating activities Current Year to date quarter (9 months) $A'000 $A'000 1.1 Receipts from product sales and related debtors 94 359 1.2 Payments for (a) exploration and (1,246) (3,422) evaluation (net) - - (b) development - - (c) production (417) (1,110) (d) administration (net) 1.3 Dividends received - - 1.4 Interest and other items of a similar nature 37 225 received 1.5 Interest and other costs of finance paid - - 1.6 Income taxes paid - - 1.7 Other - - Net Operating Cash Flows (1,532) (3,948) Cash flows related to investing activities 1.8 Payment for purchases of: (a)prospects (2,330) (2,337) - - (b)equity investments (191) (326) (c) other fixed assets 1.9 Proceeds from sale of: (a)prospects - - - - (b)equity investments - 26 (c)other fixed assets 1.10 Loans to other entities - - 1.11 Loans repaid by other entities - - Other - Bonds - (17) Net investing cash flows (2,521) (2,654) 1.13 Total operating and investing cash flows (carried (4,053) (6,602) forward) 1.13 Total operating and investing cash flows (brought (4,053) (6,602) forward) Cash flows related to financing activities 1.14 Proceeds from issues of shares. (net) - - 1.15 Proceeds from sale of forfeited shares - - 1.16 Proceeds from borrowings (net) 4,753 4,753 1.17 Repayment of borrowings - - 1.18 Dividends paid - - 1.19 Other - AIM costs (151) (201) Net financing cash flows 4,602 4,552 Net increase (decrease) in cash held 549 (2,050) 1.20 Cash at beginning of quarter/year to date 5,539 8,138 1.21 Exchange rate adjustments to item 1.20 - - 1.22 Cash at end of quarter 6,088 6,088 Payments to directors of the entity and associates of the directorsPayments to related entities of the entity and associates of the relatedentities Current quarter $A'000 1.23 Aggregate amount of payments to the parties included in 150 item 1.2 1.24 Aggregate amount of loans to the parties included in item - 1.10 1.25 Explanation necessary for an understanding of the transactions - Non-cash financing and investing activities2.1 Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows 2.2 Details of outlays made by other entities to establish or increase their share in projects in which the reporting entity has an interest Seqoil Pty Ltd, Oilex NL Holdings (India) Ltd and Oilex India Pvt Ltd are subsidiaries and have been advanced funds to satisfy joint venture acquisition and operating costs. Financing facilities availableAdd notes as necessary for an understanding of the position. Amount available Amount used $A'000 $A'000 3.1 Loan facilities Nil Nil 3.2 Credit standby arrangements Estimated cash outflows for next quarter $A'000 4.1 Exploration and evaluation 3,500 4.2 Development - Total 3,500 Reconciliation of cashReconciliation of cash at the end of the quarter (as shown in Current Previous the consolidated statement of cash flows) to the related quarter quarter items in the accounts is as follows. $A'000 $A'000 N/A 5.1 Cash on hand and at bank 465 437 5.2 Deposits at call 5,623 5,102 5.3 Bank overdraft - - 5.4 Other (provide details) - - Total: cash at end of quarter (item 1.22) 6,088 5,539 Changes in interests in mining tenements Tenement Nature of Interest at Interest at reference interest beginning of end of quarter quarter (note (2)) 6.1 Interests in mining - Refer to - - tenements relinquished, Quarterly reduced or lapsed Report 6.2 Interests in mining tenements acquired or increased Issued and quoted securities at end of current quarterDescription includes rate of interest and any redemption or conversion rightstogether with prices and dates. Total Number Issue price Amount paid up number quoted per security per security (see note 3) (see note 3) (cents) (cents) 7.1 Preference - - - +securities (description) 7.2 Changes during - - - quarter (a) Increases through issues (b) Decreases through returns of capital, buy-backs, redemptions 7.3 +Ordinary securities 50,014,319 50,014,319 Various 7.4 Changes during - - - quarter - - - (a) Increases through issues - - - (b) Decreases through returns of capital, buy-backs (c) Released from Escrow 7.5 +Convertible debt Nil Nil - securities (description) 7.6 Changes during quarter (a) Increases through issues (b) Decreases through securities matured, converted 7.7 Options 2,200,000 - Exercise price Expiry date (description and 500,000 - $0.20 28/02/2008 conversion 3,000,000 - $1.00 31/12/2009 factor) 980,534 - $1.50 31/12/2009 2,250,000 - $0.50 07/12/2008 3,250,000 - $0.40 14/12/2008 4,250,000 - $0.50 14/12/2008 1,000,000 - $0.80 14/12/2009 3,600,000 - $0.50 16/02/2009 $0.50 31/03/2010 7.8 Issued during 1,000,000 - $0.50 16/02/2009 quarter 3,600,000 - $0.50 31/03/2010 7.9 Exercised during - - quarter 7.10 Expired during - - quarter 7.11 Debentures Nil Nil (totals only) 7.12 Unsecured notes Nil Nil (totals only) Compliance statement1 This statement has been prepared under accounting policies whichcomply with accounting standards as defined in the Corporations Actor otherstandards acceptable to ASX (see note 4).2 This statement doesgive a true and fair view of the mattersdisclosed.Sign here: Date: ... 27th April 2006....(Director/Company Secretary)Print name: .......Max D.J. Cozijn...............NotesThe quarterly report provides a basis for informing the market how the entity'sactivities have been financed for the past quarter and the effect on its cashposition. An entity wanting to disclose additional information is encouragedto do so, in a note or notes attached to this report.The "Nature of interest" (items 6.1 and 6.2) includes options in respect ofinterests in mining tenements acquired, exercised or lapsed during thereporting period. If the entity is involved in a joint venture agreement andthere are conditions precedent which will change its percentage interest in amining tenement, it should disclose the change of percentage interest andconditions precedent in the list required for items 6.1 and 6.2.Issued and quoted securities The issue price and amount paid up is not requiredin items 7.1 and 7.3 for fully paid securities.The definitions in, and provisions of, AASB 1022: Accounting for ExtractiveIndustries and AASB 1026: Statement of Cash Flows apply to this report.Accounting Standards ASX will accept, for example, the use of InternationalAccounting Standards for foreign entities. If the standards used do notaddress a topic, the Australian standard on that topic (if any) must becomplied with. == == == == == ENDOILEX NLRelated Shares:
OEX.L