Oilex Ltd advises that at 14th June 2011 the Cambay-76H horizontal well was drilled to a depth of 601 metres and is preparing to drill ahead.

Report date: 14th June 2011

Status: Preparing to drill ahead

Operations:

• Spudded well on 8th June

• Drilled 17 ½” hole to 601 metres

• Set 13 ⅜” casing to 599 metres

Objectives: Cambay Eocene “tight” reservoir Y Zone

Kick off point for deviation: Approximately 1,100 metres

Planned Total Depth (TD): Approximately 2,885 metres

Days to TD: Approximately 35 days on a trouble free basis

All depths refer to measured depth below rig rotary table (“MD”)

CAMBAY EOCENE TIGHT RESERVOIRS

The Company is making progress in unlocking the potential of the Cambay “tight” Eocene reservoirs that extend across the 161 km2 Cambay Production Sharing Contract (“PSC”) area in onshore Gujarat, India. The Company intends to evaluate and exploit these reservoirs using horizontal drilling and fracture stimulation technology that has been developed and proven in North America.

The Cambay-76H “proof of concept” horizontal well will evaluate the production potential of the Y Zone interval of these “tight” reservoirs. An 8 stage fracture stimulation program will be conducted and after well clean-up, it is anticipated that a long term production test will be performed to determine flow rates, quality of hydrocarbons and commercial viability.

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