Oilex Issues Oman Drilling Update

The exploration drilling program in Oman Block 56 is continuing and is anticipated to be completed in early January 2009. The rig has mobilized to the location of Al Jumd-1 in the northern part of the block and is expected to spud within 5 days.

Sarha-2

The Sarha-2 well in Block 56, Oman, was recently completed as a horizontal production well. An initial test was run over an extended interval and data obtained from that test indicate that the oil is of a heavier nature than that encountered in Sarha-1. Consequently, the well has been suspended pending further technical evaluation and the extended production test has been postponed

Lathab-1

The rig moved to the location of Lathab-1 exploration well on November 8, and that well was drilled to a depth of 1,635 meters with oil shows at various levels. The reservoir intervals are thinner than anticipated and the well was plugged and abandoned with oil shows on November 25.

Al Jumd-1

The rig is now moving to the location of Al Jumd-1 in the northern sector of the block. The well will be drilled to a planned total depth of 1,500 meters to test Al Gharif, Al Khlata and Huqf Formation objectives.

Participants in the Block 56 Exploration and Production Sharing Agreement are: Joint Venture Party Participating Interest Oilex Oman Limited (Operator) with 25%, Videocon Industries Limited with 25%, GAIL (India) Limited with 25%, Hindustan Petroleum Corporation Limited with 12.5%, and Bharat PetroResources Limited with 12.5%.

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