Oilex advised that as at 23:30 Indian Standard Time on July 5, 2011 the Cambay-76H horizontal well has been drilled to a total depth of 2,740 meters and the completion string has been run successfully. The drilling rig will now be demobilized in preparation for mobilizing the multi-stage fracture stimulation equipment and related services.

•Report date: July 5, 2011 •Status: Preparing to demobilize drilling rig in preparation for fracture stimulation operations •Past Week's Operations ◦Drilled remainder of 8 ½" horizontal hole from 2,596 to 2,740 meters ◦Run completion string for multi stage fracture stimulation from 2,195 to 2,719 meters •Objective: Cambay Eocene "tight" reservoir Y Zone •Total Depth (TD): 2,740 meters Well log data indicated porous hydrocarbon-bearing intervals with elevated gas readings throughout the horizontal section drilled in the Y Zone.

After drilling the hole to Total Depth, the completion string for the planned multi-stage fracture stimulation program was successfully run in the horizontal well section. The Black Pearl drilling rig will now be demobilized from the well site so the high volume fracture stimulation equipment and related services can be mobilized in preparation for carrying out the Y Zone fracture stimulation operations.

Tags: Oilex Ltd