termination of rig contract for jpda wells

5 June 2009
Company Announcements Office
ASX Limited
4th Floor
20 Bridge Street
Sydney NSW 2000
Dear Sir,
TERMINATION OF RIG CONTRACT FOR JPDA WELLS, TIMOR SEA
Oilex Ltd (ASX: OEX) advises that drilling contractor Sedco Forex International Inc (Sedco) has notified
Oilex's wholly owned subsidiary Oilex (JPDA 06-103) Limited that it has elected to terminate the
agreements between them for the drilling of exploration wells using the Transocean Legend
semisubmersible drilling rig in contract area JPDA 06-103 in the Joint Petroleum Development Area (JPDA)
between Australia and Timor Leste.
Oilex and the JPDA 06-103 Joint Venture parties have no further financial obligations to Sedco arising out
of the termination.
Oilex is well positioned to conclude its farmout negotiations to assist in funding the drilling of the required
wells under the PSC, subject to the availability of a suitable replacement drilling rig.
Oilex is actively seeking an alternate rig and is working with the regulatory authorities in Dili, Timor Leste to
obtain an extension of time to the exploration period under the Production Sharing Contract to drill the
required wells.
The termination of the drilling contract with the Oilex Joint Venture by Sedco follows Sedco's earlier
termination of the drilling agreement with Nexus Energy WA Proprietary Limited. Nexus, Sedco and Oilex
had entered into a Cooperation Agreement in September 2008 which provided for Nexus and Oilex to use
the Transocean Legend on back-to-back drilling programs. Under the Cooperation Agreement Sedco had
the right to terminate the Oilex drilling agreements if the Nexus drilling agreement had been terminated.