India Operations Update

ASX Announcement

21 December 2015

ASX: OEX

AIM: OEX

l Cambay-77H produced ~715 boe during first 10 days, ~2.7MMscf gas and 252 bbls of condensate

l Cambay-77H gas sales averaged ~0.267MMscfd with a maximum peak rate of 0.572MMscfd

l The Bhandut-3 well and the associated gas production facilities are ready for start-up

Oilex Ltd is pleased to provide the following update:

Cambay-77H

Since restarting production, the Cambay-77H initial average production rate for 10 days (IP10) was ~71.5boepd. Although demand for gas fluctuates on a regular basis, as anticipated, production from Cambay-77H has gradually increased from 51boepd as previously announced on 7 December 2015. The well continues producing through a 1/64 inch choke and the average tubing head pressure for the same period was ~2,400psig. The condensate gas ratio (CGR) increased to an average of ~92.5bbls/MMscf from the previously reported 55bbls/MMscf. It is expected that with further production, the CGR may decrease to the anticipated 40-50bbls/MMscf as the tubing head pressure decreases.

Gas is sold into the low-pressure market in the immediate vicinity of the field. The well continues to meet the local low pressure market including a peak demand rate of ~0.500MMscfd for ~1 hour that occurs twice daily. Further increases in the overall market will be dependent on successful marketing efforts that are currently underway.

Ongoing production from Cambay-77H will allow a fuller understanding of its deliverability potential from the Y zone and the longer term CGR. This production data will be used to update the numerical simulation model created as part of the Independent Resource Assessment completed by RISC in April 2015 (refer ASX announcement dated 16 April 2015).

Cambay 73

Cambay-73 remains shut in, as Cambay 77H can meet current demand from the low-pressure market.

Bhandut Field

The Bhandut-3 well and the associated gas production facilities are ready for start-up (see attached photographs). The gas buyer is responsible for construction of a flowline to deliver the gas for further processing. This work has commenced and is estimated to be complete in early January 2016 at which time Bhandut-3 will commence commercial production. It is planned that Bhandut-3 will start-up at 0.7MMscfd and its performance will be closely monitored.

Joint Venture Matters

Oilex is continuing to work closely with our joint venture partner via regular meetings to resolve the outstanding receivable amount owed to the joint venture, and rescheduling the drilling of Cambay-78H and Cambay-80H wells.

Managing Director of Oilex, Ron Miller, said;

"Cambay continues to deliver positive results with Cambay-77H gas production gradually increasing as the low pressure gas market demand permits. While the higher than anticipated CGR at present is positive, ongoing production data is necessary to determine its sustainability. Another major milestone for 2015 has been achieved with Bhandut-3 and the gas production facilities ready for start-up. Oilex continues to focus on growing production and cashflow in India underpinned by a significant independently assessed Reserve and Resource base."

For and on behalf of Oilex Ltd

Ron Miller

Managing Director

For further information, please contact:

http://www.rns-pdf.londonstockexchange.com/rns/6587J_-2015-12-21.pdf