3rd Nov 2008 07:04
QUARTERLY REPORT TO SHAREHOLDERS 30 September 2008 HIGHLIGHTS
* First continuous oil production from the Cambay Field, India and from was
established from the Miocene MBS reservoir in Cambay-64 at a constrained
rate in excess of 310 barrels per day ("bopd").
* Cambay-74 tested oil at an initial constrained rate of 500 bopd from a 7
metre test interval in the MBS sandstone of apparent excellent reservoir
quality and will be completed as an oil production well.
* Cambay-19Z flowed oil to surface from a 6 metre interval in the Eocene
Basal EP IV unit under natural pressure with no formation water at an
initial rate of 800 bopd, later stabilising at a rate of 120 bopd .
* The Plan of Development for Pendalian Field is being submitted to the
Government of Indonesia with production expected in Q1 2009.
* Sarha-2 oil appraisal and development well in Oman has been drilled as a
500m horizontal well into the reservoir and being made ready for an
extended well test.
* Zero lost time incidents throughout operations centres.
CORPORATE DETAILS Board of Directors Principal & Registered Office Max D.J. Cozijn Non-Executive Chairman Level 2, 50 Kings Park Road West Perth WA 6005, Australia Bruce McCarthy Managing Director Telephone: +61 8 9485 3200 Ray Barnes Technical Director Facsimile: +61 8 9485 3290 Email: [email protected] L. L. Bhandari Independent Director Capital Structure Website: www.oilex.com.au Ordinary Shares 132,083,885 Share Registry Unlisted Options 39,925,100 Security Transfer Registrars Pty Ltd
Unlisted Performance Rights 1,351,000 770 Canning Highway
Applecross WA 6153, Australia Stock Exchange Listing Telephone: +61 8 9315 2333
Australian Stock Exchange Code: OEX Facsimile: +61 8 9315 2233
Email: AIM Market of London Stock Exchange Code: [email protected] OEX OPERATIONS REVIEW INDIACAMBAY FIELD, Gujarat(Oilex Operator - 45%)
The Cambay Field work program to date has yielded excellent overall results including:
* the establishment of oil production from Cambay-64 at a constrained rate
over 300 barrels of oil per day ("bopd") from a 2 metre interval of high
quality Miocene MBS sandstone previously not recognised as an oil zone in
old wells;
* Cambay-74 tested a 7 metre interval of oil bearing, high quality MBS
sandstone at a constrained rate of more than 500 bopd with the intention to
bring into immediate production;
* Balance of current Cambay drilling program to be re-designed to fast-track
the development of oil production from the MBS reservoir and deeper EP
III-IV and Basal EP IV oil zones
* In addition to further development wells, a number of historic wells are
being assessed for re-entry and completion at the MBS to fast-track daily
oil production rates in the short term * Cambay-19Z successfully tested oil from the Basal EP IV previously not recognised as an oil zone in old wells; and
* confirmation from three wells of the potential for commercial production of
oil and gas from the deeper known EP III-IV and shallower Oligocene OS II.
Miocene MBS Sandstone
Shallow zone workover and production testing operations of the Miocene MBS andyounger excellent quality sandstones that are highly productive in fieldsfurther to the south of Cambay are being undertaken in old wells identifiedfrom original log and drilling anomalies as candidates for re-entry in theWestern High area. The assessment of the data from old wells in relation topotential zones of oil or gas pay that were not recognised has been ongoing inparallel with the new well drilling program.Recompletion of these old wells in the shallow zones is very cost-efficientmeans of adding oil production and the wells may be brought onstreamimmediately. The oil from the MBS at Cambay-64 is high quality at 38o APIgravity and is being sold into a nearby refinery. It is currently producing ata constrained rate of 310 bopd on 5.6mm choke with a flowing tubing headpressure of 660 psi, an improvement on the initial rates of 250 - 280 bopd whentesting started on 18 October. The production rate is currently constrained bythe storage capacity on site and the need to minimise the chance of sandproduction into the well bore.In Cambay-74 a number of high quality sandstone units in the overlying youngerMiocene section were intersected and these zones which are individuallyassessed to be oil or gas bearing can be correlated with a high degree ofconfidence into old wells across the block. The distribution of oil and gas inthese old wells is currently the subject of detailed evaluation. Some of theseunits have produced gas in the past from wells located in the northern part ofthe block.In the near term, there are at least two further candidates for re-entry andcompletion of the MBS sandstone within 3 km of Cambay-74 and Cambay-64. Newwell locations will be prepared and proposed to the Joint Venture at theearliest opportunity with the benefit of the production data and new test datafrom the re-entry of the old wells. Plans for testing of the shallower Miocenezones above the MBS sandstone in certain existing wells are being formulatedfor consideration by the Joint Venture.The volume of oil-in-place for the Miocene MBS sandstone ranges from 15-25million barrels (100% basis) for which a recovery factor in the range of30%-50% could be reasonably expected. These ranges will be refined withproduction history from producing wells, testing of by-passed zones in oldwells and detailed correlation of those old wells and the 3D seismic data. Thisestimate is in addition to the previous published estimate of 48 millionbarrels of oil in place for the deeper objectives in the western sector of thefield.
Figure 1. Cambay Field Top Miocene MBS.
Cambay-74 Oil Discovery
The Miocene MBS reservoir has been successfully tested in Cambay-74 at a constrained rate of more than 500 bopd. The well will be completed as an oil producer on conclusion of the test program.
A cased hole drillstem test of well Cambay-74 over a perforated interval of 7metres in the Miocene Basal Sand (MBS) has yielded a flow of more than 500 bopdat a flowing tubing pressure of 820 psi on a 8 mm choke. During the initialflow period the flow rate was intentionally constrained to avoid possible sandproduction from the formation which has been observed in other Miocenereservoirs in the region of similar high quality sands. After the pressurebuild-up test is complete, the well will be returned to production andgradually opened up to establish the maximum sustainable production rate fromthe zone.The oil is of high quality and has a gravity 380 API. It was tested through a8mm choke with a flowing tubing pressure of 820 psi during the initial flowperiod at unstabilised rates of over 500 bopd. On conclusion of the initialflow period the well will be shut-in for pressure buildup. The formationpressure measurements indicate that the reservoir is at virgin pressure and hasnot been depleted by production from older wells in the north of the block, nowshutin, that produced some gas from the MBS in the past. When the pressurebuild-up test is complete, the well will be returned to production andgradually opened up to establish the maximum sustainable production rate fromthe zone.Cambay-74 has confirmed the commercial viability of the high quality basalMiocene reservoir sandstones that are widely distributed in the Cambay block.The reservoir unit labelled the MBS is found at a depth generally of about1,400 metres and the oil is very mobile having relatively high gravity and amoderate content of dissolved gas.
Cambay-74 spudded on 03 October and reached a TD of 1603m in the 12‚¼" hole section. The well is located approximately 400 metres to the north-west of Cambay-64 and has intersected a thicker MBS in the same reservoir compartment.
Wireline logs from Cambay-74 indicate the presence of oil in the MBS, as wellas additional oil and gas bearing zones in shallower Miocene sands that will betested in nearby wells.
cambay - 64 production results
Re-entry of existing well Cambay-64 and testing from a 2 metre interval ofperforations in the Miocene Basal Sand (MBS) has yielded an initial flow ofapproximately 250 bopd with no water on 5.6 mm choke at a flowing tubingpressure of 660 psi. The rate has since stabilised at an average rate of 310bopd at a flowing tubing pressure of 660 psi, a progressive improvement on theinitial test rate of production that was reported on 20 October. The well hasbeen choked back to prevent sand production as some wells completed in the MBSelsewhere in the area have produced sand. No sand has been produced fromCambay-64 and the choke is gradually being opened as production testingcontinues.
The rate is also currently constrained by limited storage tank capacity at the well site and by tank trucks required to haul the crude to the nearest available offtake point.
Eocene Basal EP IV
The successful flow test of oil from a deeper Eocene zone than had been provenin Cambay Field previously is very encouraging and confirms Oilex's view of thedeeper zone prospectivity of the Cambay block generally and the high potentialto prove up a development project based on a best estimate volume ofoil-in-place exceeding 60 million barrels of oil. In Cambay-19Z, oil flowed tosurface from a 6 metre interval in the Eocene Basal EP IV unit under naturalpressure with no formation water at an initial rate of 800 bopd, laterstabilising at 120 bopd.Near-term testing programs involving fracture stimulation are being undertakenin the deeper oil and gas zones in Cambay-19Z, -23Z and -73 which will assistwith the design of production wells that are likely to be long reach horizontalwells with multiple fracture stimulation zones. Oil or gas flow rates fromwells of such design may increase from these less permeable zones by a factorof 2.5 - 5.
The appraisal campaign of wells completed to date, 3D seismic and extensive analysis undertaken in Cambay Field, Gujarat, India and validates the potential of Cambay's Eocene EPIII/IV horizon in the western high area of the block.
Figure 2. Cambay Field Structure Maps with Appraisal Well Locations - A, Top Deccan; B, Basal EP IV; C, Top EP IV; D, Top OS II
Eocene EP III-IV Field Appraisal Campaign
The primary focus of the appraisal drilling campaign has been the Eocene EPIII/EPIV and deeper oil potential in the western part of the block. This appraisalprogram focussed on assessing the commerciality of hydrocarbon resourcesallocated to the EP III-IV intervalAnalysis of 65 existing wells and newly acquired 3D seismic data had indicateda best estimate initial in-place resource of 62 million barrels of oil(including condensate) and 350 bcf of gas (on a 100% basis) calculated for themain EPIV and OSII reservoirs. Of this total volume, 48 million barrels of oilin place was allocated to the EPIII/IV and OS II zones in the area appraised inthe campaign of which about 36 million barrels initial oil in place wasestimated for EP IV.
The analysis of results from Cambay 19Z, 72 & 73 indicates that target flow rates of 500-1000 bopd per well for the EPIII/IV may be achievable in a high angle deviated production well drilled into the EP III/IV that is fracture stimulated at 4-5 intervals.
Based on a natural flow rate of 50 bopd from a single zone in the EPIII/IV, animprovement by a factor of 2.5 - 5 times applied to 4-5 fracture stimulatedintervals in a horizontal or high angle EPIII/IV production well is consideredto be reasonable.
Next Steps in Cambay EP III-IV Campaign
* With this additional information in hand, planning of high angle oil
production wells can be finalised for inclusion in the development proposal
for the EPIII/IV interval. * A workover rig is mobilising to fracture stimulate Cambay-73.
* Fracture stimulation and long term testing of Cambay-23Z are awaiting core
analysis results. This well was drilled to assess the gas potential of the
EPIII/IV sands in the main basinal part of the field.
* Data from Oligocene OSII penetrations acquired in the campaign are being
analysed to refine the OSII appraisal program.
Cambay-19Z Oil Discovery
Cambay-19Z, the second well in the appraisal program is an oil discovery in theBasal EP IV reservoir and oil was confirmed also at the level of EP III-IV at alevel slightly shallower level in the well. The Basal EP IV zone flowed oil atan initial rate of about 800 barrels per day before stabilising at 120 bopd.These zones have been prepared for fracture stimulation to improve thepermeability of these reservoir units. The information from these singlefracture stimulations in a vertical well will assist in designing productionwells that are likely to be drilled as long reach horizontal well bores withmultiple fracture zones and productivity in such wells is expected to increaseby a factor of 4-7 times that achieved in the vertical well tested undernatural conditions.Fourteen wells have penetrated this horizon, mainly in the Western High Area.These old wells were either not tested or were poorly evaluated and appear tohave a similar log response to the zone that was successfully tested inCambay-19Z. Preliminary indications from seismic and the analogous well logsare that the Basal EP IV may extend across the Western High Block in which casethe area of closure is about 26 km2 with 150 metres of relief. The reservoirquality in various old wells that have penetrated the basal EP IV is thesubject of a current detailed study.
Figure 3. Basal EP IV - map in TWT 3D oblique perspective
Cambay-73 Appraisal Well
Cambay-73 is a vertical well that was located to drill the OS II and EP III-IVprimary objectives on the eastern side of the fault that separates the WesternHigh Block from the Basin Gas Area. The well spudded on 25 July and reached atotal depth of 2,435 metres when it was cased and suspended pending furtherevaluation of results and likely testing of oil bearing horizons after fracturestimulation. It was anticipated that both zones would be gas bearing in thiswell and it now appears from the log and test results that the oil zone at OSII and EP IV of the Western High Block extends further east than previouslythought.One DST was run at the level of the Oligocene OS II sandstone from which showswere recorded while drilling. Data indicate that the OS II zone is at virginpressure and, with the oil recovery from the DST, suggest that it is part ofthe Western High geological compartment rather than the Basin Gas Area.Three open hole drill stem tests were also run over the Basal EPIV and EPIII /EPIV intervals and detailed analysis of the test results is continuing. Smallvolumes of oil and gas were recorded at surface and one test was a technicalfailure.Sabarmati Field, gujarat(Oilex Operator - 40%)No further work has been carried out in the past quarter. Intermittentproduction of oil continues from Sabarmati-1. The field will benefit greatlyfrom the fracture stimulation work planned for Cambay Field. The main reservoirunit has similar characteristics to the Eocene EP III-IV at Cambay and optionsfor drilling a long reach directional well may be considered after the resultsof the work at Cambay are better known.
bhandut field, gujarat
(Oilex Operator - 40%)
No further work has been carried out in the past quarter. Oil continues to beproduced intermittently from existing wells. The field remains prospective withdrilling of the structural crest to the west of the wells drilled to date andmultiple reservoir objectives from Miocene to fractured Deccan to be reviewedafter relevant work at Cambay is concluded.
indonesia
west kampar psc, central sumatra
(Oilex - earning 60%)
A Plan of Development (POD) including an updated resource assessment for thePendalian Oil Field (Oilex 60%) located in the West Kampar Production SharingContract ("PSC") area in Indonesia is being submitted to the IndonesianGovernment for approval. The POD is based on a Best Estimate ContingentResource of 13.7 million barrels oil in place (mmstboip) (Table 1).The objective of the POD is to bring the Pendalian Field into production in 2phases comprising 2 wells in phase 1 and full field development of 3-4 wells inphase 2. The previous plan was to start production from a single well,Pendalian-3. The first phase has now been expanded to include a second well,Pendalian-4 with a corresponding increase in the likely production rate up toan estimated 1,800 - 2,000 bopd. Production is anticipated to commence lin Q12009 dependent on timing of Government approvals.Contingent Resource - Development Low Estimate Best Estimate High EstimatePending mmstboip mmstboip mmstboip
Sihapas Sandstone Units D-6, C-5 5.8 13.7 29.1
Table 1 Contingent Resource Oil in Place (100% basis) - Pendalian Field
As required in Indonesia, the technical studies are carried out by an independent third party appointed by the regulator (BPMigas) with input and review by personnel from the operator, PT Sumatera Persada Energi (SPE), and BPMigas. Oilex has also been participating in this process.
The development plan is based on results from the Pendalian-1 well drilled in1993 and the Pendalian-3 appraisal well which was drilled, tested and suspendedas a future oil production well in November 2007. Pendalian-3, funded by Oilexas part of the farmin arrangement with SPE, flowed oil from two shallow zonesin the Sihapas Sandstone. The commingled flow potential with artificial liftwas estimated to be up to 1,200 barrels per day.
To date, significant conclusions arising from this independent evaluation are:
* Inversion studies of the seismic data indicate that the Sihapas sands are
continuous reservoirs, supporting the volumetric assumptions for the Pendalian Field. * The Best Estimate Contingent Resource of oil-in-place determined by the
independent third party for the two Sihapas zones is 13.7 mmstboip (gross),
with a High Estimate volume of 29 mmstboip (gross). These volumes are similar to those determined by both SPE and Oilex. * A staged approach to the development, with initial production from the
Pendalian-3 well followed by Pendalian-4 production well, 3D seismic and
full field development was recommended, subject to approval by the
Indonesian Ministry of Petroleum.
An evaluation of further potential in the Pendalian Field in the form ofundiscovered prospective resources at other potential reservoirs was alsopresented.Undiscovered Prospective Low Estimate Best Estimate High Resource Estimate mmstboip mmstboip mmstboip Units B-1,2,3; C-1,2,3; E-1 14 22 33
Table 2 - Undiscovered Prospective Resource (100% basis) - Pendalian Field
Remaining POD requirements are being finalised by the third party adviser to BPMigas prior to submission to the Indonesian authorities. The recommended development schedule, subject to regulatory approval, calls for both Pendalian-3 and Pendalian-4 to be onstream at the earliest opportunity, now likely to be in Q1 2009.
Figure 4. West Kampar PSC Area Location Map including Prospects & Leads
Plans are in place for the early drilling of the Pendalian-4 well and surveywork for both 2D and 3D seismic programs in the West Kampar block in 2008 hascommenced. The latest version of mapping has confirmed the explorationpotential of the West Kampar PSC which will be delineated by additional seismiccoverage and investigated with the drilling of 3 exploration wells in acampaign scheduled to commence in 2009.omanBlock 56, south oman(Oilex Operator - 25%)
* The exploration program in Oman is now into the second phase of drilling
with the first appraisal /development well near completion at Sarha-2 as a
long reach horizontal well into the Al Khlata primary objective that flowed
oil in Sarha-1. * Sarha-2 will be tested briefly before being hooked for an extended production test.
* The Sarha structure is analogous to fields currently producing across the
block boundary and the results confirm Oilex's expectation of the prospectivity of Block 56. * The second phase of drilling comprises 4 wells, 3 of which including
Sarha-2 are will be located in the low risk northwestern part of the block
on the flank of the South Oman Salt Basin. The fourth well is an
exploration well in the central part of the block on the salt wall trend
along which there may be developed very large structures.
Sarha-2 the first appraisal well that is designed as a future oil producer onthe Sarha structure spudded on 4 September and was drilled to a depth of 2,123metres measured depth (MD) as a high angle well. The primary objective in thewell is the deeper Al Khlata oil zone which was drilled as a 500 metrehorizontal section.The younger Gharif Formation, which exhibited good oil shows in Sarha-1 appearsto water bearing from the evaluation of wireline logs in Sarha-2. Incompensation, a good quality potential reservoir unit was intersected in theRahab Sandstone which was not found in Sarha-1. A test conducted at this levelresulted in no oil flow because of the high viscosity of the oil.Following completion, an extended production test over a period of 120 dayswill be conducted. Arrangements are being finalised to truck the produced oilto a nearby (25km) pipeline terminal for transport to a crude export terminalon the coast.The Sarha-1 discovery well confirmed that the productive trend in the adjacentblock continues into Block 56. New seismic acquisition and reprocessing ofexisting data indicates that there is a number of structures similar to Sarha-1present in the western flank area of Block 56 and the most prospective of thesewill be the locations for several of the wells in the Phase 2 drillingcampaign. It is anticipated that further drilling will be carried out on theSarha discovery to evaluate the potential of oil zones not able to be tested inSarha-1 and to provide information required for development of the Al Khlataoil pool discovery.Preliminary estimates of the discovered petroleum initially in place based onthe current data range from 20 to 70 million barrels (on a 100% basis). Giventhe characteristics of the oil recovered at Sarha-1 there will also be a focuson establishing the recoverable reserves volume and specialists in this type ofdevelopment are studying the data from Sarha-1 to estimate the recoverablevolumes and to provide input to a development plan.Heavy oil (preliminary oil gravity of 13.30 API) was recovered during testingof the Al Khlata zone in the Ghadaq-1 well and these results will also be thefocus of review given that oil with these characteristics is routinely producedin Oman and in other heavy oil areas.The results from Alyanbou-1 which was a higher risk test of a large anticlinalstructure in a remote area of the block will be incorporated into the overallassessment of the prospective areas of Block 56. Prospectivity in the blockremains very high
LEADS & PROSPECTS MMstboip Range Mmstboip Cum Range POS*
Al Khlata + Gharif 20 - 83 419 40-50% (9) Al Khlata (14) 8 - 395 769 10-25% Cambrian (9) 27 - 182 810 7-20%
Block 56 - Leads & Prospects by Category and Size
POS - Possibility of Success is the chance of finding hydrocarbons in detectable quantities
Figure 5. Block 56 - Phase 2 well locations
Seismic Acquisition
Preparations for tender of the 3D seismic acquisition program have been completed. Acquisition is expected to start in Q4.
joint petroleum development area between timor leste and australia
JPDA 06-103, FLAMINGO BASIN OFFSHORE Joint petroleum development area
(Oilex Operator - 25%)
Figure 6. Location Maura 3D Seismic Survey and ENI Kitan oil discovery Wells
The Maura 3D seismic survey, the first phase of offshore operations in BlockJPDA 06-103, was completed successfully by the Geowave Champion seismic vesselin August 2008. The survey covered an area of 2,082 km2. Data from this surveywill be combined with existing 3D seismic surveys to provide 3D seismiccoverage over more than 90% of the area of the Block. Processing of the data isexpected to be concluded about the end of 2008 and the interpretation of thedata over the entire block is anticipated to be completed by about end of March2009. Locations for exploration wells will then be selected for drillingstarting about mid-year 2009.To that end, on 13 June 2008 Oilex issued a conditional Notice of Award jointlywith Nexus to Sedco Forex International for the supply of the Transocean Legendsemi submersible drilling rig. The rig would drill development wells for Nexusbefore 2 wells for Oilex, estimated to start in about mid-year 2009. Oilex hasaccordingly made application, on behalf of the JPDA Block 06-103 Joint Venture,seeking an extension of time under the PSC to enable its 2 wells to be drilledby January 2010 rather than by January 2009. The application is under review bythe relevant governmental authorities.
australia
WA-388-P carnarvon basin, offshore western australia
(Oilex Operator - 20%)
The Rose 3D seismic survey of 1,180 km2 began in August 2008 over thesoutheastern part of the permit using the vessel "Geowave Champion" and isexpected to be completed in September 2008. Interpretation of the reprocessed2D and existing third party seismic data was completed and provided the basisfor Sasol to farmin for 30% equity interest in the permit by funding 60% ofcertain costs of the Rose 3D seismic survey for 2008. Reprocessing of existingseismic data has been completed and interpretation is in progress.
Figure 7. Location Rose 3D Seismic Survey, WA-388P
EPP 27 - Otway basin, offshore SOUTH AUSTRALIA
(Oilex Operator - 20%)
Oilex, on behalf of the EPP 27 Joint Venture, is negotiating with the relevantauthorities regarding the status of the exploration permit. The term of thefinal permit year 6 ended on 24 August 2008 and discussions with the Governmentauthorities are in progress to determine future activity on the permit.
corporate
Safety, Health and environment
No lost time incidents were recorded in Oilex's operational areas during the quarter.
Community development - Timor-Leste Rural Health project
Objective: Implement health care training and support operations in pre-determined areas of need in cooperation with the Ministry of Health, local health authorities and communities.
AAI is an Australian-based, independent humanitarian aid organisation that isnon-profit and non-sectarian. AAI is operating a health program on the islandof Artauro that is funded by Oilex and is fully coordinated with the Ministryof Health and World Health Organization and supports their respectiveobjectives.
company structure
The Company presently has 132,083,885 shares on issue. These shares are traded on the ASX in Australia and on the AIM market of the London Stock Exchange under the code: OEX.
Oilex also has 39,925,100 unlisted options on issue, the majority of these being held by executive staff and 1,351,000 Employee Performance Rights.
At 30 September, 2008 the Company retained net cash and receivables of approximately A$24.3 million.
Oilex regularly updates its website at www.oilex.com.au
For and on behalf of the Board
Dr B. H. McCarthyManaging Director31 October 2008The information in this report has been compiled by the Managing Director ofOilex Ltd, Bruce McCarthy B.Sc. (Hons) PhD (Geology) who has over 29 yearsexperience in petroleum geology. The estimates of hydrocarbons in place werereviewed by Ray Barnes B.Sc. (Hons), the Technical Director of Oilex Ltd whohas over 35 years experience in petroleum geology and is a member of the AAPG.Mr Barnes reviewed this announcement and consents to the inclusion of theestimated hydrocarbons in place in the form and context in which they appear.The resource estimates contained in this report are in accordance with thestandard definitions set out by the Society of Petroleum Engineers, furtherinformation on which is available at www.spe.org.
Oilex's nominated advisor in relation to the AIM market is RFC Corporate Finance Ltd, contact: Stuart Laing, [email protected]
Permit Schedule
PERMIT BASIN / JOINT VENTURE EQUITY % OPERATOR STATE / PARTIES COUNTRY Cambay Cambay / Oilex Ltd 30.00 Oilex Field Gujarat / Ltd PSC India Oilex NL Holdings 15.00 (India) Limited Gujarat State 55.00 Petroleum Corp. Ltd
Bhandut Cambay / Oilex NL Holdings 40.00 Oilex NL
Field Gujarat / (India) Limited Holdings PSC India (India) Gujarat State 60.00 Limited Petroleum Corp. Ltd
Sabamati Cambay / Oilex NL Holdings 40.00 Oilex NL
Field Gujarat / (India) Limited Holdings PSC India (India) Gujarat State 60.00 Petroleum Corp. Ltd Blcok 56 South Oilex Oman 25.00 Oilex Oman EPSA Oman / Limited Oman GAIL (India) Limited 25.00 Videocon Industries 25.00 Ltd Bharat Petroleum 12.50 Corporation Ltd Hindustan Petroleum 12.50 Corp Ltd
West Central Oilex (West Kampar) 60.00(1) PT Kampar Sumatra / Limited Sumatera PSC Sumatra / Persada Indonesia PT Sumatera Persada 40.00 Energi EPP27 Otway / SA Oilex Ltd 20.00 Oilex / Australia Ltd Videocon Industries 20.00 Ltd Gujarat State 20.00 Petroleum Corp. Ltd Great Artesian Oil & 40.00 Gas Limited JPDA Flamingo / Oilex (JPDA 06-103) 25.00 Oilex 06-103 Joint (JPDA 06-103) PSC Petroleum Ltd Development Area / Timor-Leste & Australia GSPC (JPDA) Limited 25.00 Global Energy Inc. 25.00 Bharat 25.00 Petroresources JPDA Ltd WA- Carnarvon / Oilex Ltd 20.00 Oilex 388-P WA / Ltd Australia Gujarat State 20.00 Petroleum Corp Ltd Videocon Industries 20.00 Ltd Bharat Petroleum 20.00 Corporation Ltd Hindustan Petroleum 20.00 Corp Ltd
(1) Oilex earning 60 % equity interest
Listing Rule 5.3 Appendix 5B Mining exploration entity quarterly report
Introduced 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98, 30/9/2001.
Name of entity OILEX LTD ABN Quarter ended ("current quarter") 50 078 652 632 30 SEPTEMBER 2008
Consolidated statement of cash flows
Cash flows related to operating activities Current quarter Year to date $A'000 (3months) $A'000 1.1 Receipts from product sales and related - - debtors 1.2 Payments for (a) exploration and (16,651)
(16,651) evaluation - - (b) development (342) (342) (c) production (1,175) (1,175)
(d) administration (net) 1.3 Dividends received - - 1.4 Interest and other items of a similar 358 358 nature received 1.5 Interest and other costs of finance paid - - 1.6 Income taxes paid - - 1.7 Other (provide details if material) - - Net Operating Cash Flows (17,810)
(17,810)
Cash flows related to investing activities
1.8 Payment for purchases of:(a) prospects - - (b) equity investments - - (c) other fixed assets (200) (200) 1.9 Proceeds from sale of: (a) prospects - - (b)equity investments - - (c) other fixed assets - - 1.10 Loans to other entities - - 1.11 Loans repaid by other entities 1,438 1,438 1.12 Other (provide details if material) - - Net investing cash flows 1,238 1,238
1.13 Total operating and investing cash flows (16,572) (16,572)
(carried forward) 1.13 Total operating and investing cash (16,572) (16,572) flows (brought forward) Cash flows related to financing activities 1.14 Proceeds from issues of shares, - - options, etc 1.15 Proceeds from sale of forfeited - - shares 1.16 Proceeds from borrowings (net) - - 1.17 Repayment of borrowings - - 1.18 Dividends paid - - 1.19 Other (provide details if material) - - Net financing cash flows - - Net increase (decrease) in cash (16,572) (16,572) held 1.20 Cash at beginning of quarter/year 33,487
33,487 to date 1.21 Exchange rate adjustments to item 1,882 1,882 1.20 1.22 Cash at end of quarter 18,797 18,797
Payments to directors of the entity and associates of the directors
Payments to related entities of the entity and associates of the relatedentities Current quarter $A'000 1.23 Aggregate amount of payments to the parties included 252 in item 1.2 1.24 Aggregate amount of loans to the parties included in - item 1.10 1.25 Explanation necessary for an understanding of the transactions -
Non-cash financing and investing activities
2.1 Details of financing and investing transactions which have had a material
effect on consolidated assets and liabilities but did not involve cash flows N/A
2.2 Details of outlays made by other entities to establish or increase their
share in projects in which the reporting entity has an interest N/A
Financing facilities available
Add notes as necessary for an understanding of the position.
Amount available Amount used $A'000 $A'000 3.1 Loan facilities - - 3.2 Credit standby arrangements - -
Estimated cash outflows for next quarter
$A'000
4.1 Exploration and evaluation 9,000 4.2 Development - Total Reconciliation of cash
Reconciliation of cash at the end of the Current quarter Previous quarter quarter (as shown in the consolidated
statement of cash flows) to the related $A'000 $A'000 items in the accounts is as follows. 5.1 Cash on hand and at bank 6,396 4,138 5.2 Deposits at call 12,401 29,349 5.3 Bank overdraft - - 5.4 Other (provide details) - - Total: cash at end of quarter (item 18,797
33,487
1.22)
Changes in interests in mining tenements
Tenement Nature of interest Interest Interest at reference at end of (note (2)) beginning quarter of quarter 6.1 Interests in mining - Refer to Permit - - tenements Schedule in Quarterly relinquished, Report reduced or lapsed 6.2 Interests in mining Refer to Permit tenements acquired Schedule in Quarterly or increased Report
Issued and quoted securities at end of current quarter
Description includes rate of interest and any redemption or conversion rights together with prices and dates.
Total number Number Issue price Amount paid quoted per security up per security
7.1 Preference +securities - - - -
(description)
7.2 Changes during quarter - - - -
(a) Increases through issues (b) Decreases through returns of capital, buy-backs, redemptions
7.3 +Ordinary securities 132,083,885 132,083,885 Various - 7.4 Changes during quarter - - -
- (a) Increases through - - - - issues (options exercised) (b) Decreases through returns of capital, buy-backs 7.5 +Convertible debt - - - - securities (description)
7.6 Changes during quarter - - - - (a) Increases through issues (b) Decreases through securities matured, converted 7.7 Options Exercise Expiry date price (description and conversion 500,000 - $1.00 31/12/2009 factor) 3,000,000 - $1.50 31/12/2009 1,000,100 - $0.50 07/12/2008 2,000,000 - $0.40 14/12/2008 3,000,000 - $0.50 14/12/2008 4,250,000 - $0.80 14/12/2009 1,000,000 - $0.50 16/02/2009 4,500,000 - $0.50 31/03/2010 775,000 - $0.50 31/07/2009 775,000 - $0.65 31/07/2009 775,000 - $0.90 31/07/2010 500,000 - $1.50 31/10/2009 500,000 - $1.75 31/10/2009 500,000 - $2.00 31/10/2010 500,000 - $1.40 31/01/2010 450,000 - $2.00 31/01/2010 450,000 - $2.50 31/01/2011 2,500,000 - $2.00 31/03/2011 300,000 - $1.75 31/03/2010 300,000 - $2.25 31/03/2011 300,000 - $2.75 31/03/2012 500,000 - $1.57 30/09/2011 350,000 - $1.60 30/04/2010 350,000 - $2.10 30/04/2010 350,000 - $2.70 30/04/2011 3,900,000 - $2.00 01/07/2011 3,900,000 - $2.50 01/07/2011 900,000 - $1.75 30/06/2011 900,000 - $2.25 30/06/2011 900,000 - $2.75 30/06/2011
Issued and quoted securities at end of current quarter (cont'd)
Description includes rate of interest and any redemption or conversion rights together with prices and dates.
Total number Number Issue price Amount paid quoted per security up per security 2006 Performance Rights 279,000 Tranche 1 expire 1/07/2011 254,000 Tranche 2 expire 1/07/2011 249,000 Tranche 3 expire 1/07/2011 2007 Performance Rights 143,000 Tranche 1 expire 1/07/2012 128,000 Tranche 2 expire 1/07/2012 128,000 Tranche 3 expire 1/07/2012 2008Performance Rights 89,000 Tranche 1 expire 1/07/2013 40,000 Tranche 2 expire 1/07/2013 41,000 Tranche 3 expire 1/07/2013 7.8 Issued during 900,000 - Exercise Expiry date quarter price 900,000 30/06/2011 $1.75 900,000 30/06/2011 $2.25 30/06/2012 $2.75 2008Performance Rights 89,000 Tranche 1 expire 1/07/2013 40,000 Tranche 2 expire 1/07/2013 41,000 Tranche 3 expire 1/07/2013 7.9 Exercised during - - - - quarter 7.10 Expiredduring - - - - quarter 7.11 Debentures Nil Nil (totals only)
7.12 Unsecured notes Nil Nil (totals only) Compliance statement
1 This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Act or other standards acceptable to ASX.
2 This statement does give a true and fair view of the matters disclosed.
Sign here:Date: 31 October 2008(Director/Company Secretary)Print name: Max D.J. Cozijn == == == == ==
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