Quarterly Report to Shareholders

QUARTERLY REPORT TO SHAREHOLDERS

31 MaRCH 2013

Summary

Cambay PSC (45% & Operator), onshore Gujarat, India

·; Subsequent to the reporting period, the Cambay Work Programme and Budget covering activity through to the end of March 2014 was approved.

·; During the quarter, three well workovers have been completed using a rig assigned from GSPC.

·; A Gas Sales Agreement was signed for off-spec gas from Cambay-73 and was submitted to the Government for endorsement.

·; Formal tendering of the Cambay 77 offset well rig contract and long lead items has commenced.

JPDA 06-103 PSC (10% & Operator), offshore Timor Sea

·; During the period the Joint Venture received a one-year conditional extension of the Initial Period from the regulatory authority.

New Opportunities

·; Following the conclusion of the reporting period, the Company secured a Special Prospecting Authority (SPA)-0055, covering 11,400km2 in the Canning Basin, onshore Western Australia.

·; The Company has since submitted bids on two gazettal blocks adjacent to the awarded SPA, which would provide complete coverage of the same play fairway identified in SPA-0055.

Overview

Oilex continues its transition to an unconventional energy producer, focused on projects where the company has first mover advantage to assets with significant tight reservoir potential. Subsequent to the reporting period, regulatory approvals for the Cambay Field Work Programme and Budget to the end of March 2014 were received. Work has commenced on tendering activities associated with long lead items and the drilling rig for the firm well, Cambay-77.

A Gas Sales Agreement for off-spec gas from Cambay-73 has been signed and submitted for endorsement by the Government as part of the process to restart production from this well.

The Company has secured an additional asset for its portfolio in the Canning Basin, onshore Western Australia and has submitted bids on two gazettal blocks adjacent to the awarded SPA, which would provide complete coverage of the play fairway.

During the quarter, the Company continued to search for a suitable rig for drilling the Bazartete Prospect in JPDA 06-103 and seeks to confirm various matters related to its tenure under the existing treaty regime between Australia and Timor Leste.

OPERATIONS REVIEW

Health, Safety, Security and Environment

No Lost Time Incidents were recorded for Oilex personnel or contractors at any location during the quarter.

CAMBAY FIELD, Gujarat, India

During the reporting period:

·; The Cambay Field produced 847 barrels of oil (381 barrels net to Oilex).

·; The Operating Committee approved the Cambay Work Programme and Budget which was submitted to the Management Committee for review and approval.

·; Work commenced on a programme of three well workovers using a rig assigned from Joint Venture partner, Gujarat State Petroleum Corporation (GSPC).

Subsequent to the reporting period:

·; The Government regulators have approved the Cambay Work Programme and Budget to the end of March 2014.

·; The Company completed the three-well workover programme at Cambay.

·; The Company signed a Gas Sales Agreement with a publicly-listed Indian company for sales of off-spec gas from Cambay-73.

·; The Cambay-73 well is a conventional vertical well drilled and completed in 2008 with smaller-scale fracture stimulation and 10 metres of active perforations in the Y Zone. It is approximately one kilometre from Cambay-76H with no discernible flow barriers or substantial changes in geological character between the wells. The well was shut-in on 28 June 2012 with cumulative gas production of 53 MMscf (24 MMscf net to Oilex) and condensate production of 1,483 barrels (667 barrels net to Oilex). Prior to it being shut-in, the well was flowing at a rate in excess of 300 Mscfd with associated condensate.

BHANDUT FIELD, Gujarat, India

·; Oilex is continuing to investigate commercial options to realise value from this asset with its Joint Venture partner, GSPC.

SABARMATI FIELD, GUJARAT, INDIA

·; The Sabarmati Field produced 897 barrels of oil (359 barrels net to Oilex) during the reporting period.

JPDA 06-103, TIMOR SEA

During the reporting period:

·; Pursuant to the Joint Venture's request, a one-year conditional extension to the Initial Period was received from the JPDA regulatory authority and was accepted by the Joint Venture. A condition of the extension is the requirement to secure a suitable rig by 15 June 2013 for drilling of the proposed Bazartete Prospect.

·; The Joint Venture became aware that a condition of the Certain Maritime Arrangements in the Timor Sea (CMATS) had lapsed, enabling either Australia or Timor Leste to move to extinguish this Treaty. Based upon legal advice, this change to CMATS may have implications for the Joint Venture's tenure in JPDA 06-103. The Joint Venture is seeking meetings with both governments to clarify the matter.

·; The Joint Venture continued engineering reviews and negotiations to identify and secure a suitable rig for drilling the Bazartete Prospect as the third commitment well.

·; The Bazartete Prospect has been assessed by Oilex to have the potential to contain approximately 70 million barrels of mean prospective oil resources (unrisked, 100% basis) with a 23% chance of success. The range of prospective resource estimates is shown in Table 1.

Table 1 Bazartete Prospect - Prospective resource estimates

West Kampar PSC, Central Sumatra, INDONESIA

·; Oilex continues to pursue a commercial resolution to the Joint Venture dispute in parallel with considering options to enforce its Arbitration Award in Jakarta.

* See note to Asset Schedule

New Opportunities

During the reporting period:

·; The Company continued to review and evaluate suitable tight hydrocarbon projects that are consistent with its strategy.

Subsequent to the reporting period:

·; The Company announced on 19 April 2013 that it had accepted an offer for Special Prospecting Authority with Acreage Option (SPA/AO) which partially covers the Wallal Graben in the Canning Basin, Western Australia. The total land area covered by SPA-0055 is 11,400 km2 (~2,800,000 acres).

·; The Company also announced on 19 April 2013 that it had submitted two bids for L12-08 andL12-09 gazettal blocks which cover the remainder of the Wallal Graben. These competitive bids are currently being evaluated by the Department of Minerals and Petroleum of Western Australia. The total land area covered by the two gazettal blocks is 6,444km2 (~1,600,000 acres).

CORPORATE

·; At the end of the quarter the Company retained a cash position of A$5.8 million.

·; As per the December 2012 quarterly report, the Company has retained the services of a recruitment firm to assist with the identification and evaluation of external and internal candidates for the position of Managing Director.

·; Ron Miller has agreed to continue as Managing Director on a temporary basis during the recruitment process. Mr Miller will be remunerated at A$270,000 per annum and this package is effective from 1 April 2013.

·; The previously announced appointment of Andy Pfaff as General Manager Operations - India has not proceeded due to personal reasons of Mr Pfaff. Suitable alternative candidates have been identified and an appointment is expected to be made in the current quarter.

The Company's website www.oilex.com.au is regularly updated with current information.

(1) Oilex (West Kampar) Limited is entitled to have assigned an additional 22.5% to its holding through the exercise of its rights under a Power of Attorney granted by SPE following the failure of SPE to repay funds due. The assignment has been provided to BPMigas (now MiGas) but has not yet been approved or rejected. If Oilex is paid the funds due then it will not pursue this assignment.

LIST OF ABBREVIATIONS AND DEFINITIONS

For further information, please contact:

Competent Person's Statement

Information in this report relating to hydrocarbon reserves or resources has been reviewed and checked by Mr Peter Bekkers B.Sc. (Hons), the Chief Geoscientist of Oilex Ltd who has over 15 years of experience in petroleum geology and is a member of the Society of Petroleum Engineers and AAPG. Mr Bekkers consents to the inclusion of the information in this report relating to hydrocarbon reserves and resources in the form and context in which it appears. Resource estimates contained in this report are in accordance with the standard definitions set out by the Society of Petroleum Engineers, Petroleum Resources Management System, 2007.

This document may include forward-looking statements. Forward-looking statements include, but are not necessarily limited to, statements concerning Oilex Ltd's planned exploration program and other statements that are not historic facts. When used in this document, the words such as "could", "plan", "estimate" "expect", "intend", "may", "potential", "should" and similar expressions are forward-looking statements. Although Oilex Ltd believes that its expectations reflected in these are reasonable, such statements involve risks and uncertainties, and no assurance can be given that actual results will be consistent with these forward-looking statements.

Rule 5.3

Appendix 5B

Introduced 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98, 30/9/01, 1/6/10, 17/12/10.

Name of entity

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: 26 April 2013

Managing Director

Print name: Ron Miller