15 Jan 2008 07:00
OILEX LTD
15 January 2008
Centralised Company Announcements Office
Australian Stock Exchange Limited
10th Floor20 Bond StreetSydney NSW 2000Dear Sir,
Subject: OPERATIONS REPORT - OMAN DRILLING PROGRAM
Oilex Ltd advises that the Sarha-1 exploration well, the first of three exploration wells that will be drilled in a continuous sequence by Oilex in the Block 56 Production Sharing Contract Area, Sultanate of Oman is drilling ahead in 81/2" hole below 1,673 metres in the Cambrian Huqf Formation.
The primary and secondary objectives penetrated in the Permian to Cambrian interval exhibited oil shows and increased gas readings from drill cuttings. Upon reaching total depth, currently prognosed to be at approximately 1900 metres, a comprehensive wireline logging program will be carried out to evaluate the anomalous zones encountered and to determine whether production testing is warranted.
Participants in the Block 56 Production Sharing Contract are:
Joint Venture Party Participating Interest Oilex (Oman) Ltd (Operator) 25% Videocon Industries Limited 25% GAIL (India) Limited 25% Hindustan Petroleum Corporation Limited 12.5% Bharat Petroleum Corporation Limited 12.5% Yours sincerely,B. H. McCarthyManaging Director
For further information, please contact:
Ray Barnes, Technical Director, Oilex Ltd Tel. +61 8 9226 5577 (Western Australia)
Archie Berens, Director Pelham Public Relations Tel. +44 20 7743 6679 (United Kingdom)
RFC Corporate Finance Ltd acts as Oilex's Nominated Adviser, contact Stuart Laing +618 9480 2506
The information in this report has been compiled by the Managing Director of Oilex Ltd, Bruce McCarthy B.Sc. Hons. PhD (Geology) who has over 29years experience in petroleum geologyand Ray Barnes, B.Sc. Hons.the Technical Director of Oilex Ltdwho has over 35 years experience in petroleum geology and is a member of the AAPG & EAGE. Estimates ofoil-in-place arereported in accordance with the standard definitions set out by the Society of Petroleum Engineers, further information on which is available at www.spe.org.
ABN 50 078 652 632 Level 3, 50 Kings Park Road West Perth WA 6005 Australia PO Box 588 West Perth WA 6872 Australia
Telephone: (+61 8) 9226 5577 Facsimile: (+61 8) 9226 2108
Email:oilex@oilex.com.au Web: www.oilex.com.au
OILEX LTD