Cambay-77H Operations Update

4 April 2014

· Essar Land Rig # 4 repairs are complete and the rig is operational

· Preparing to drill ahead from 1626.5m MD to 9 5/8 casing point

Oilex Ltd (ASX: OEX, AIM: OEX) is pleased to announce that Essar Land Rig #4 has been repaired and is operational as of 04 April 2014. The rig is currently pulling out of hole (POOH) on Cambay-77H to check the drill string components. Once these are checked and serviced, the rig will return to drilling operations at 1626.5m MD and drill ahead to the selected casing point of 1653m MD.

Cambay-77H is located adjacent to the Cambay-76H horizontal well that underwent a successful multiple staged fracture stimulation (frac stim) programme along its 633m lateral section in 2012. However, it was suspended prior to testing due to downhole mechanical problems. Prior to suspending the well, gas and condensate flowed to surface during well control operations.

The Cambay-77H well design incorporates a 350m lateral section coupled with a conventional "plug and perf" method for frac stim. The frac stim programme consists of four (4) stages with two (2) fractures started from each stage. This completion is expected to facilitation the primary goal of the well - recording hydrocarbon flow information at surface during a production test.

As announced on 07 March 2014, progress on Cambay-77H will be released on a milestone basis as indicated below:

ü Setting and cementing of the 13 3/8 inch casing at approximately 590mMD

· Setting and cementing of the 9 5/8 inch casing at approximately 1,650mMD

· Completion of drilling operations at well TD, approximately 2,357mMD

· Setting and cementing of the 4 1/2 inch production casing

· Completion of mobilisation of the fracture stimulation spread to site

· Completion of the fracture stimulation programme

· An announcement in relation to flow back and production testing will be dictated by the well response to the stimulation programme

A time gap between setting and cementing the 4 1/2 inch production casing and completion of mobilisation of the fracture stimulation spread is anticipated in order to minimise potential standby charges associated with demobilisation of the drill rig from site.

Managing Director of Oilex, Ron Miller, said;

"Although the mechanical breakdown was unfortunate, the rig has been repaired within the anticipated time and the well bore appears to have remained in good condition. Oilex and Essar have worked closely together during the intervening period to inspect all rig systems and rectify any faults that may have impeded future operations to finish Cambay-77H. Operational activities to date have been completed in line with estimated budget durations. We look forward to completing this hole section and running the 9 5/8 inch casing before drilling ahead into the reservoir section''

For and on behalf of Oilex Ltd

Ron Miller

Managing Director

For further information, please contact:

http://www.rns-pdf.londonstockexchange.com/rns/1339E_1-2014-4-4.pdf