Oilex Calls Off Acquisition of Additional Stake in West Kampar PSC

Oilex Ltd.

Oilex (West Kampar) has elected to terminate the agreement to acquire an additional 15% participating interest in the West Kampar Production Sharing Contract onshore Sumatra, Indonesia from PT Sumatera Persada Energi (SPE). Oilex retains a 45% Working Interest in the PSC. This is consistent with Oilex's plans to adjust its interests in the West Kampar PSC as noted in the Operations Update accompanying the release made on  December 22, 2008.

Under the terms of this agreement, Oilex had the right to terminate the agreement if Government approval to the assignment had not been received by January 7, 2009. Oilex exercised that right by notice, which has been acknowledged and accepted by SPE. SPE is required to reimburse the funds advanced by Oilex to date under the terms of this agreement; such refunds are secured over SPE's interest in the Production Sharing Contract.

Oilex is continuing to pursue the early development of the Pendalian field and the ongoing work program to maximise the value of the West Kampar asset.