Oilex Updates Drilling Operations in Indonesia and India

Fields of Cambay
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Oilex reports that its Pendalian-3 in Indonesia and the Bhandut-2Z in India indicate promising oil shows.

The 81/2' hole at Pendalian-3 has been drilled to the planned total depth of 748 meters and wireline logging is being carried out.

Preliminary indications while drilling are that the target Sihapas sands were intersected as expected with a number of potential oil zones indicated at depths similar to the nearby Pendalian-1 well.

Once the logging program has been completed, the well will be cased and a comprehensive 14-day multi-zone testing program will be undertaken.

Sumatera Persada Energi is the operator of this project with 55%. Oilex holds the other 45% participating interest.

The Bhandut-2Z sidetrack well has been drilled to the planned core point at a measured depth of 1024.8 meters, and a 9 meter core has been cut that will provide porosity, permeability and oil saturation information over the target 'G' sand potential oil reservoir.

Preparations are under way to resume drilling to a total depth of 1,083 meters, at which point wireline logs will be run. Based on the wireline log interpretation, consideration will be given to testing the well and if successful, the most appropriate approach to completing the well for production.

Oilex is the operator of Bhandut with 40%, and Gujarat State Petroleum holds 60% participating interest.

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