Oilex accepts offer of two Canning Basin Permits

23 October 2013

Oilex accepts offer of TWO CANNING BASIN exploration permits

· Acceptance letters submitted for STP-ETP-0106, discrete area L12-08 and STP-ETP-0107, discrete area L12-09

· Oilex issues Invitation to Tender for the Gravity and Magnetic surveys

· Ongoing discussions with various Native Title Claimants continue

Oilex Ltd (ASX: OEX, AIM: OEX, Oilex) is pleased to confirm that it has submitted letters of acceptance for two Canning Basin Exploration Permits, represented by STP-ETP-0106, discrete area L12-08, and STP-ETP-0107, discrete area L12-09. As previously announced, Oilex submitted competitive bids for these areas in April 2013 and was notified of its status as Preferred Applicant for both discrete areas earlier this month.

Oilex now controls ~4.4 million acres (incorporating contiguous areas of Permits SPA-0055, L12-08 & L12-09) encompassing the full extent of the interpreted Wallal Graben play fairway located onshore in the Canning Basin, Western Australia. As announced in July 2013, Oilex is pursuing a farmout of a portion of the Permit area with a number of interested parties. Having control over the entire play fairway will enhance the opportunity to reach agreement with one or more of these parties (Please refer to Diagram 1 included below).

In parallel with the farmout, Oilex continues to engage with various Native Title Claimants around their claims that cover portions of the discrete areas the Company has accepted. Tender documents for the Gravity and Magnetic surveys have been issued for activities that form part of the work commitments.

The contiguous nature of the three discrete areas may allow the opportunity to acquire a single large survey, potentially realising cost efficiencies and expediting a technical understanding of the acreage's hydrocarbon potential.

Managing Director Ron Miller said:

While preparations for drilling Cambay-77H continue in India, Oilex has been able to move forward with plans for its new substantial acreage position in the Canning Basin without disrupting the organisation's focus on this critical well. On the basis of the interest in our Australian assets to date, we are confident of securing a quality partner in the near future.

 For and on behalf of the Board

 Ron Miller

Managing Director

Diagram 1 - Canning Basing, Western Australia : To view this diagram - please refer to the Oilex website. Thank you.

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