oilex is sitting on a mssive oil field..

This is a clip out of the fat prophets update. I think folk are missing the point here. oilex is clearly sitting on what looks like a major oil discovery here. i guess it takes time before the obvious takes hold. The latest drilling should have more results for us share holders this week and the coming weeks. i think as this unfolds, the funds will work this out before the general market. dyor.

Sarha-1

The Sarha-1 well targeted four potential reservoirs, the Gharif, the Al Khlata, the Haima and the Huqf. Strong oil

shows were encountered in the first three reservoir sections before all drilling fluids were lost in the Huqf

formation. Oil shows and resistivity anomalies from logging while drilling (“LWD”) just prior to drilling fluid loss

indicated the presence of oil. The potential for the Huqf formation is prognosed to be in the order of 70-

350mmbbls oil in-place. The Huqf formation is a carbonate reservoir that appears to be highly fractured. Whilst

fractured reservoirs have the capacity to produce at high rates, there are associated technical difficulties. This

was the case in the Sarha-1 well where these difficulties prevented achievement of a satisfactory cement bond.

This meant that conclusive testing of the Gharif, Haima and Huqf formations was not possible as fluids from non

reservoir zones were able to communicate between the non isolated sections of the well. The Al Khlata,

however, was able to be isolated via a cement squeezing process, and produced oil to the surface at variable,

unstabilised rates potentially up to 200-400bopd by varying the speed on a progressive cavity pump. It is

important to note that these flow rates are not considered to be indicative of the potential flow rates for this

zone. The Al Khlata is thought to contain ~25m net pay whilst the Gharif is estimated to contain another 20m net

pay. A different well design will be used for the next well to minimise the possibility of similar technical issues

recurring. It is also likely that the Joint Venture will return to the Sarha-1 discovery to drill another well in Q2

2008 to test the potential of the Gharif and Haima/Huqf formations