Oilex Raising Funds to Expedite Exploration, Development

Oilex Ltd. has reached an in-principle agreement with Hartleys Limited to raise up to A$67.5 million through the issue of up to 50 million ordinary shares at an issue price of $1.35 per share. The shares will be issued predominantly to international and domestic institutional investors.

The monies raised will allow Oilex to expedite its global exploration and development program and may include:

--undertaking drilling of up to 8 wells in Cambay Field and allowing for completion costs plus additional wells in the event of success as part of the 9 month drilling contract;
--drilling and completion of one well and one work over well on Bhandut Field;
--acquiring 3D seismic on Sabarmati Field;
--drilling and completion of one well on Sabarmati Field;
--drilling and appraisal of one well on Otway Basin Block EPP27;
--acquiring 2D and 3D seismic on Oman Block 56;
--drilling and completion of up to 3 wells on Oman Block 56;
--acquiring 2D and 3D seismic on JPDA 06-103 Block; and
--participation in any new activities around the Indian Ocean rim.

In addition to progressing the Company's exploration activities, the Company may also use some of the funds raised to retire some of its existing debt facilities and to provide additional working capital.

The Directors are appreciative of the strong support for the company's stated objectives and future plans that has been demonstrated by the existing and new institutional investors who are participating in this capital raising and by the Company's corporate adviser stockbroker, Hartleys Limited.

The placement of new shares will be undertaken subject to shareholder approval at a general meeting to be held on or around Wednesday 6 June 2007, in relation to which a notice of meeting is expected to be dispatched this week.

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