Oilex Commences Drilling at Cambay Well

Oilex advised that the Cambay-76H horizontal well was spudded at 00:00 hours (WST) on June 8, 2011.

The Cambay-76H "proof of concept" well will evaluate the production potential of the Y Zone interval of the extensive Eocene "tight" reservoirs in the onshore Cambay Production Sharing Contract ("PSC") in Gujarat State, India.

It is estimated that the well, which includes a 610 meter lateral section, will take approximately 35 days to drill and complete. An 8 stage fracture stimulation program of the Eocene "tight" reservoir Y Zone will then be conducted. After well clean-up, it is anticipated that a long term production test will be performed to determine flow rates, quality of hydrocarbons and commercial viability.

The results of the long term production test will also provide important information for the ongoing Independent Reserves Certification commissioned by the Company.



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