Cambay-77H - Intervention Complete

17 September 2014

· Significant improvement in flowback rates for gas, oil and water

· Approximately 75% of the original frac water recovered

· No formation water recovered to date

· Changing frac tree to production tree to reduce daily operating costs

· Preliminary gas composition laboratory analysis is comparable to Cambay-73

Oilex Ltd (ASX: OEX, AIM: OEX) is pleased to announce the successful completion of the chemical intervention work with a significant increase in flowback rates. As announced on 21 August 2014, the work was completed in accordance with the plan developed by Oilex on behalf of the Joint Venture. Cambay-77H continues to return frac water and additional treated water from coiled tubing (CT) operations along with producing gas and light oil. Water as a proportion of the production flow must be ~10% or less before testing can commence and it currently varies between 60%-90%. In order to improve water recovery efficiency, nitrogen gas lifting has also been implemented while the CT unit is at site.

Oilex is also taking additional steps to reduce the operating cost structure during the flowback and clean-up of Cambay-77H including:

· Removing the frac tree and replacing it with a standard production tree in anticipation of moving towards a formal production test

· Demobilising various equipment and associated personnel given the current understanding of the well's performance

The initial compositional analysis of the separator gas from Cambay-77H has been received and concludes that Cambay-77H and Cambay-73 gas have very comparable compositions. As such Oilex will seek Joint Venture and Government of India endorsement to sell separator gas into the local "off-spec" gas market. Incremental operations to support "off-spec" sales should be minimal as significant equipment and personnel are already available at Cambay-77H site as part of the flowback and clean-up operations.

Managing Director of Oilex, Ron Miller, said;

"We remain very positive about Cambay-77H and look forward to getting through the water recovery and into the production testing phase of our proof of concept well. Having similar gas composition as Cambay-73 provides a great opportunity to increase near term production into a market where gas is in very short supply. Selling gas during clean-up and testing will be a welcome revenue stream in addition to the sale of crude oil produced from Cambay-77H."

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 17 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.