Oilex Begins Oman Drilling Program

Oilex's Sarha-1 exploration well was spudded on Dec. 31, 2007. The well is the first of three exploration wells, which will be drilled in a continuous sequence by Oilex in the Block 56 Production Sharing Contract Area, Sultanate of Oman using the Abraj Rig 204.

Current operations are drilling ahead in 12 1/4' hole at 242 m. Surface casing had been set in the period prior to arrival of the Abraj rig to expedite the program. Drilling operations are planned to take 18 days and total depth is expected to be reached at a depth of approximately 1650m.

Oilex has been pursuing an aggressive exploration program in Oman since the award of Block 56 to the Oilex-operated joint venture in July 2006. In that time, Oilex has developed a significant operating capability within Oman with capacity to execute a major drilling campaign on behalf of the joint venture.

The Sultanate of Oman was chosen by Oilex and its partners as a Middle East country with a demonstrated and prolific hydrocarbon production history, a stable Government and a well developed and accessible hydrocarbon evacuation infrastructure. The Block 56 joint venture brings together a strong team of companies with the capacity and experience to bring a potential discovery in the area into production in a short timeframe, with Oilex as operator.

The well is planned to evaluate the prolific Permo-Carboniferous reservoir interval which is a major productive horizon across Oman. In addition the well will be deepened to intersect the prospective Cambrian Huqf Formation which has been found oil-bearing in adjacent wells.

Sarha-1 will be followed by Ghadaq-1 in the western province of conventional plays and Alyanbou-1, in the frontier area on the northern salt wall trend. Four wells are planned for Q3 2008 on locations that will depend to a large extent on the results from the initial 3 well program and a further 4 wells are anticipated to be drilled in late 2008 and Q1 2009.


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