Cambay-77H Well - 13-3/8 inch Casing set

11 March 2014

· 13 3/8 inch casing set and cemented on 11 March 2014

· Currently preparing to drill ahead in 12 ½ inch hole

Oilex Ltd (ASX: OEX, AIM: OEX, Oilex) is pleased to announce that Cambay-77H well drilling operations successfully completed setting and cementing the 13 3/8 inch casing at 590m Measured Depth (MD). The casing was set at a slightly higher depth than anticipated in order to land the casing in a suitable formation and the rig is currently preparing to drill ahead in 12 ½ inch hole (see attached figures).

Cambay-77H is located adjacent to the Cambay-76H horizontal well that underwent a successful multiple staged fracture stimulation 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 all of the key operational and technical learnings that have arisen from a forensic engineering analysis of Cambay-76H by multiple expert parties. A shorter lateral section (350m) coupled with a conventional "plug and perf" method for fracture stimulation is expected to facilitate the primary goal of the well - recording hydrocarbon flow information at surface during a production test.

Oilex intends to inform the market about progress during drilling operations on a milestone basis as indicated below.

· 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;

"Drilling operations continue as planned. The Cambay-77H well path will now be directionally drilled to a position just above the target reservoir section, finishing with a nearly horizontal orientation."

To view Figures 1 and 2 of this document, please refer to the Oilex Website.

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.