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Timor Sea Drilling Update - Lore-1 Well

26th Nov 2009 07:00

26 November, 2009

TIMOR SEA DRILLING UPDATE - LORE-1 WELL

Oilex Ltd advises that drilling of the Lore-1 well, the first well of a 2 well program in the Timor Sea contract area JPDA 06-103, is continuing. At 16.00 (WST) on 25 November the "Songa Mercur" rig was drilling ahead in 17 1/2" hole at 2,189 metres after the setting of 30" surface casing at 428 metres.

The well is drilling the Lore prospect and is targeting mean prospective oil resources of 195 million barrels (100% basis). The Lore-1 well was spudded at 13:15 (WST) on 20 November 2009. The planned total depth of the well is approximately 3,670 metres and is anticipated to be completed by late December 2009.

The "Songa Mercur" rig is contracted to drill two wells in JPDA 06-103 (with an option of one additional well). After drilling the Lore-1 well the rig will drill the Lolotoe prospect which is targeting mean prospective oil resources of 90 million barrels (100% basis).

JPDA 06-103 is a highly prospective offshore oil exploration block and is located near to a number of existing producing fields as well as Eni's recent Kitan oil discovery currently under development.

Oilex's next update on the Lore-1 well will be on 3 December and thereafter on a weekly basis.

Oilex is the Operator of the JPDA 06-103 Joint Venture. The participatinginterests are:Joint Venture Party Participating Interest Oilex (JPDA 06-103) Ltd (Operator) 10% Global Energy Limited (Videocon) 25%(1) GSPC (JPDA) Ltd 25%(1) Bharat PetroResources JPDA Limited 25%(1) Japan Energy E&P JPDA Pty Ltd 15%

1. Pan Pacific Petroleum (JPDA 06-103) Pty Ltd has recently signed conditional

farmin deals with Global Energy Limited, Bharat PetroResources JPDA Ltd and

GSPC (JPDA) Ltd to acquire a 15% participating interest in JPDA 06-103.

Yours sincerely,B. H. McCarthyManaging Director

For further information, please contact:

Ray Barnes Technical Director, Oilex Ltd Tel. +61 8 9485 3200 (Western Australia)

Archie Berens Director Pelham Public Relations Tel. +44 20 7337 1509 (United Kingdom)

The information in this report has been compiled by the Managing Director of Oilex Ltd, Bruce McCarthy B.Sc. (Hons) PhD (Geology) who has over 29 years experience in petroleum geology. The estimates of hydrocarbons in place were reviewed by Ray Barnes B.Sc. (Hons), the Technical Director of Oilex Ltd who has 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 the estimated hydrocarbons in place in the form and context in which they appear. The 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. Further information 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]

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