Oilex Assumes Operatorship of Cambay Field in India

Oilex has completed the transfer of operatorship for the Cambay Field, onshore Gujarat, India, taking over from Niko Resources Ltd, effective from June 1, 2006.

Oilex is the Operator responsible for all operations, including production, in the Cambay block. Operations personnel are based out of new offices in Vadodara (Baroda) which is near to the Cambay Field.

As a consequence of the transfer of operatorship for Cambay Field and the pending transfer of operatorship for Bhandut and Sabarmati Fields, six former employees of Niko, and the contract field maintenance and security staff have joined Oilex. The total complement of employees of the company in India is now 12, led by Rich Paces, Country Manager and Chief Operating Officer based in New Delhi and Tony Beckett, General Manager - Operations based in Vadodara.

Earlier this year, Oilex acquired a 45% participating interest and the role of Operator in the Cambay Production Sharing Contract, 15% of which remains subject to the approval of the Government of India. Oilex will also become Operator of the Sabarmati and Bhandut Fields when the approval of the Government is received.

Current operations on Cambay include completing the planning for the drilling program and construction of the 3 well sites for the first phase of drilling, now likely to commence in late June.