Pendalian-3 Appraisal Well to Spud Shortly

Mobilization of equipment contracted by Pt Sumatera Persada Energi (SPE) to drill the Pendalian-3 appraisal well on the Pendalian anticline in West Kampar Production Sharing Contract (PSC) has commenced. Site preparation has been completed and the well is anticipated to spud within 10-15 days.

Further to the statement made in May by Oilex, the Government of Indonesia has formally approved the assignment of the 45% participating interest in the PSC for the West Kampar Block in Sumatera, Indonesia from SPE to Oilex Ltd's wholly owned subsidiary Oilex (West Kampar) Limited. All conditions precedent for the transfer of the 45% participating interest have now been satisfied.

The participating interests in the PSC after the assignment are Pt Sumatera Persada Energi as operator with 55% and Oilex (West Kampar) Limited with 45%.

Oilex is pleased to have completed the formal assignment process with the Government of Indonesia in such a short timeframe. The commencement of operations in Indonesia will be another significant step in Oilex's Indian Ocean Rim growth strategy.

It is anticipated that the Pendalian field can be brought into production quickly if justified by the results of Pendalian-3. This will assist in funding an intensive exploration program that is planned on highly prospective structural trends in the West Kampar PSC area.