Oilex Issues Update On Timor Sea Well

Oilex Ltd reported Thursday that the Lolotoe-1 well at 16:00 (WST) on 30 December 2009 was at a depth of 3,785 meters. Intermediate wireline logs were being run over the interval including the secondary objective Flamingo Formation which encountered some minor gas and oil shows while drilling. On completion of the wireline logging, 9*" casing will be set above the primary objective Elang/Plover Formation sandstones. The Lolotoe-1 well is the second well of a 2 well program in the Timor Sea contract area JPDA 06-103.


Time of report:     16.00 (WST) on 30 December 2009                           
Status:             Running wireline logs prior to setting 9 *"         
Operations:           * Well spudded 02:30 on 17 December 2009 (WST)          
                      * Surface casing set at 176 meters                      
                      * 17½" hole drilled to 2,496 meters                      
                      * 13 3/8" casing run to 2,491 meters                    
                      * 12 ¼" hole drilled to 3,785 meters                    
                      * Running intermediate wire line logs                   
Objectives          Elang/Plover sands (primary)                               
                    Flamingo sands (secondary)                                
Planned total depth Approximately 3,985 meters                              
Days from spud to TD:  20 - 25 days on a trouble free basis                    

All depths refer to depth below rig rotary table

The Lolotoe prospect is a robust 3 way dip faulted anticline having about 300 meters of vertical relief. The well is targeting a mean prospective oil resource of 90 million barrels (100% basis) in the primary objective Elang/ Plover formations. The water depth at the well location is 105 meters.

The reservoir objectives penetrated in the Lolotoe-1 well will be evaluated by a full suite of data including mud log, real time drilling data and wire line logs after the well reaches total depth to determine presence of hydrocarbons.

The Joint Venture participating interests in JPDA 06-103 are:

Joint Venture Party Participating Interest Oilex (JPDA 06-103) Ltd (Operator) 10 Videocon JPDA 06-103 Limited 25%(1) GSPC (JPDA) Ltd 25%(1 Bharat PetroResources JPDA Limited 25%(1) Japan Energy E&P JPDA Pty Ltd 15% (1) Pan Pacific Petroleum (JPDA 06-103) Pty Ltd has recently signed conditional farmin deals with Videocon JPDA 06-103 Limited, Bharat PetroResources JPDA Ltd and GSPC (JPDA) Ltd to acquire a 15% participating interest in JPDA 06-103.