Cambay Workover Update

ASX Announcement

8 December 2015

ASX: OEX

AIM: OEX

l Cambay-77H gas is being sold at a peak rate exceeding 110 boepd, via Cambay-73 facilities

l Cambay-19z oil production ~12 bopd plus associated gas

l Cambay-20 Hydraulic Lift Pump (HLP) installed

Oilex Ltd is pleased to provide the following workover update:

Production from the Cambay Field is now ~75 boepd and may increase in line with demand from the local low pressure gas market now that Cambay-77H is online.

Cambay-77H

The Cambay-77H workover is complete and, based upon cumulative production since restarting the well, is now averaging ~51boepd via the flowline connection to Cambay-73 facilities. The well is producing through a 1/64 inch choke and the tubing head pressure is ~2,600 psig and steady. Production from Cambay-77H is meeting the demand from the local low pressure gas market, including a peak demand rate of ~0.500MMscfd for ~1 hour period that occurs twice daily. At peak demand, gas is being sold from Cambay-77H at greater than 110boepd using the average condensate to gas ratio (CGR) of ~55bbls/MMscf since restarting the well.

The well performance is being closely monitored subsequent to recommencing production and a fuller understanding of its deliverability potential will be gained from ongoing production. Although demand for local gas fluctuates according to peak demand times as noted above, it is anticipated that overall gas demand from the local low pressure gas market may gradually increase now that Cambay-77H is online. An increase in the market overall will be dependent on successful marketing efforts in India. This marketing is underway.

As anticipated, the newly installed production tubing has improved the flow performance of the well compared to flowback and testing operations during 2014. The workover rig installed the production tubing without having to kill the well, this is believed to be the first time this activity has been successfully accomplished in a horizontal multi-stage frac'd well in India.

Cambay-19z

Cambay-19z is now producing oil at ~12 bopd plus associated gas from the Eocene (EP IV) formation, and is within expectations. The associated gas is used at site to power the pump. The operation to reposition the downhole pump has been successful. The well has also been fitted with a chemical injection system to improve flow performance. Cambay-19z is located approximately 1.4 km to the west of Cambay-77H.

Cambay-20

Installation of the HLP unit and downhole pump is complete and pumping out of the brine has commenced. Gas has been detected at surface in a similar manner to Cambay-19z. Cambay-20 has previously been an intermittent oil and gas producer without using a downhole pump. It is located approximately 200 metres from Cambay-77H and associated gas not used to power the pump is transmitted to the Cambay-73 gas treatment facilities.

Other potential workover candidates

The future possible workover list has ~ 6 new candidates for consideration. As previously announced, subject to ongoing discussions with our Joint Venture Partner regarding cashcall payments, a decision will be made in relation to further workovers after the Cambay-60 workover is complete.

Managing Director of Oilex, Ron Miller, said;

"The Cambay workover campaign continues to deliver positive results with oil production from Cambay-19z meeting expectations and the deliverability of Cambay-77H gas production enhanced with successful installation of the production tubing. Overall, in relation to the Cambay Field, Oilex is now focussing on its objective of achieving a production rate target of ~150 boepd."

For and on behalf of Oilex Ltd

Ron Miller

Managing Director

For further information, please contact: