Cambay-77H Fracture Stimulation Contractor

17 March 2014

· Schlumberger has been awarded the fracture stimulation services contract for Cambay-77H

· Programme is based upon Plug and Perf method consisting of four stages

· Equipment and personnel will mobilise after demobilisation of Essar Land Rig 4 successfully completes drilling and completion operations.

Oilex Ltd (ASX: OEX, AIM: OEX, Oilex) is pleased to announce that the Cambay Joint Venture has awarded the fracture stimulation programme for Cambay-77H to Schlumberger.  Schlumberger was one of a number of international services companies operating in India that participated in the competitive tendering process. Oilex, as Operator, will be working with Schlumberger on the fracture stimulation programme details for Cambay-77H which shall be implemented after the drilling rig has been demobilised from site.

The "plug and perf" completion design incorporates the lessons learned from Cambay-76H and recommendations from the forensic engineering report. It is a simpler, more robust design consisting of four stages with two fracture initiation points in each stage representing eight fractures in the 350 metre lateral section.

Subsequent to completing the four stages of fracture stimulations, the isolation plugs between the stages will be removed and Cambay-77H will then be flow tested to complete the proof of concept activities for the Cambay Joint Venture. The flow test is targeting commercial production from the first successful application of multi-staged fracture stimulated horizontal wells in India. This technique is widely used in North America and recognised as a key enabler in the significant increase of domestic oil and gas production from tight reservoirs in the United States.

Managing Director of Oilex, Ron Miller, said;

"Schlumberger is a well-known and experienced service contractor for fracture stimulation work around the world and have an extensive fleet of equipment and capable personnel in India. Oilex looks forward to working with them to ensure a successful fracture stimulation programme. Although awarded after the spud of Cambay-77H, the schedule for the fracture stimulation work will align to the drilling programme as Cambay-77H is currently being directionally drilled to the 9 5/8 inch casing point."

For and on behalf of Oilex Ltd

Ron Miller

Managing Director

For further information, please contact:

Qualified Petroleum Reserves and Resources Evaluator statement

Pursuant to the requirements of Chapter 5 of the ASX Listing Rules, the information in this report relating to petroleum reserves and resources is based on and fairly represents information and supporting documentation prepared by or under the supervision of Mr. Peter Bekkers, Chief Geoscientist employed by Oilex Ltd. Mr. Bekkers has over 15 years' experience in petroleum geology and is a member of the Society of Petroleum Engineers and AAPG. Mr. Bekkers meets the requirements of a qualified petroleum reserve and resource evaluator under Chapter 5 of the ASX Listing Rules and consents to the inclusion of this information in this report in the form and context in which it appears. Mr. Bekkers also meets the requirements of a qualified person under the AIM Note for Mining, Oil and Gas Companies and consents to the inclusion of this information in this report in the form and context in which it appears.