Oilex Provides Drilling Update in Indonesia

Indonesia - West Kampar PSC-Pendalian-3:

The testing program is now in progress at the Pendalian-3 well. Wireline data confirm that reservoir quality is excellent and three cased-hole drill stem tests of the likely oil zones in the Sihapas Sandstone section are expected to start this week. The program is designed to test a series of sandstone units, which are established producing reservoirs at these depths in nearby fields.

The zones that will be tested by DST's #3, #4 and #5 zones are analogous to zones that tested oil from Pendalian-1.

As anticipated, based on the interpretation of the wireline logs, the first test, DST #1, over the deepest interval has produced fresh water although there were minor indications of oil. The DST #1 and #2 equivalent intervals in nearby wells did not flow oil and DST #1 has confirmed that the interval is a fresh water zone. DST #2 has been deleted from the program.

Participants in the West Kampar Production Sharing Contract include Sumatera Persada Energi as the operator with 55% interest and Oilex with 45% interest.

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