Cambay-77H Well Frac Stim Operations Update

04 July 2014

· Frac tree repairs have been completed

· Stage 2 has been successfully fracture stimulated

· Additional frac tree mobilising to Cambay-77H well site for contingency

Oilex Ltd (ASX: OEX, AIM: OEX) is pleased to announce that Fracture Stimulation Operations (Frac Ops) have recommenced following repairs to the frac tree. As a precaution, mobilisation of a spare frac tree has commenced and it will standby at Cambay-77H site, as all the spare valves have been used for these repairs.

Stage 2 fracture stimulation (frac) has been successfully completed, including a data frac. The well response to stimulation was similar to the Stage 1 frac. As previously reported, subsequent to Stage 1 activities, gas was detected at surface and elevated overpressure of ~5,000psi was measured indicating a pressure increase of 670psi. The original reservoir pressure of ~4,330psi was interpreted from the micro frac programme. No decrease in the elevated overpressure has been noted subsequent to the recommencing operations.

Another announcement will be made upon completion of frac ops and mill out operations. Announcements related to flow back and clean up as well as production testing will depend upon the well response.

Managing Director of Oilex, Ron Miller, said;

"We are pleased to resume frac operations subsequent to the tree repairs and it is very encouraging to see a similar well response to the Stage 1 frac. Importantly, the elevated over-pressure of ~5,000psi continues to be monitored. This is especially encouraging. Oilex has taken the precaution of mobilising standby frac tree to mitigate against further failures in valves exposed to proppant. Oilex looks forward to completing frac operations followed by the flowback and clean-up, leading to production testing 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.