from explorer to producer

The following from the quarterly. Oilex are working overtime to sort out the oil storage constraints in India. Once this is sorted then they will ramp up the productione here. The oil is cost around $5 a barrel to produce in India and is a great cash cow for Oilex.

Not hard to work out what Oilex'x main aim will be short term.(get Cambay rocking and rolling)


HIGHLIGHTS

• A placement of shares to raise A$10.1 million was finalised in December.

• Commenced oil production from the Miocene (MBS) reservoir in Cambay Field, India. 16,860 bbls oil
was produced during the quarter (constrained by oil off take infrastructure).

• Continued testing of gas and condensate/oil from Cambay 19Z and 73 wells (EPIII/IV reservoir
section).

• Interpretation of new 3D in JPDA 06-103 showing high potential (300-500 mmstboip) oil leads and
prospects analogous to nearby fields and ENI’s Kitan discovery.

• The four well drilling program in Block 56, Oman, has been completed with Sarha appraisal
intersecting oil over 200m net section. Al Jumd-1 well discovered oil in the Al Khlata over the interval
1163 – 1328 metres with no oil-water contact identified and 27 metres of net pay. Testing is planned
of the Al Jumd-1 discovery in March 2009.

• Continued to progress plan for early production from Pendalian-3 well with Indonesian Government
and additional drilling on Pendalian Field.

• Contracts completed for sale of Bow shares and options (A$1.9 million).

• Zero lost time incidents throughout operations centres.

• Retained net cash of A$14.7 million.

INDIA

CAMBAY FIELD, GUJARAT
(OILEX OPERATOR - 45%)

Highlights

• Oil production from Miocene Basal Sand (MBS) commenced during the quarter with two
wells brought on production.

• Two additional development wells are planned for second quarter 2009 with potential to add
800-1,000 bpd of oil production.

• Flow continued from Cambay-19Z and Cambay-73 EPIII/EPIV fracture stimulated zones
providing critical data to assist with planning for the potential development of gas resources
in these intervals.

• Planning for two additional MBS appraisal/production wells has advanced with drilling
currently scheduled for May 2009.

CAMBAY-74

Cambay-74 was drilled in October 2008 and was located to test the deeper Basal EP IV primary
objective which had tested oil in Cambay-19Z. Oil was confirmed in the Miocene secondary objective
and the well was completed without drilling the deeper targets. It commenced production from the MBS
on 5 December 2008. For the period to end December the well had produced 7,453 bbls of oil. The well
is currently is producing from the MBS at a rate of approximately 270 bopd with 0-5% water and a 640
psi FTHP. The gas/oil ratio (GOR) has remained relatively constant at ~430 scf/bbl. The oil is being
transported to a nearby refinery and sold along with the crude oil produced from Cambay-64. The well
remains choked back and production rates have fluctuated due to issues associated with limited tank
storage capacity at the refinery and constraints on transporting larger volumes of oil by road. Oilex is
currently working with the refineries to acquire additional storage capacity to rectify the bottlenecks.

CAMBAY – 64

Cambay-64 is an old well that was re-entered to test the possibility of the presence of a by-passed oil
zone at the level of the MBS. The test was successful and the well commenced production from the
MBS on 17 October 2008. For the period to end December the well has produced 9,374 bbls of oil. The
well is currently producing from the MBS in a choked back condition (choke size 12/64 to 16/64”) to
preserve reservoir energy and due to delivery point constraints as described above. Constrained rates
have varied from 30 – 90 bopd with a FTHP fluctuating between 450 – 800 psi and remedial work which
was anticipated in October is planned for early 2009 to improve the oil flow potential while additional
tank storage capacity is acquired.