Ann: Cambay-77H - Flow-back Update, page-4

Oilex Ltd (ASX: OEX, AIM: OEX) is pleased to announce that Cambay-77H well continues to produce crude oil and frac water and ~ 55% of the water used to stimulate the well has been recovered. Light crude oil continues to be recovered and most has been transported to a nearby refinery for sale. Gas produced concurrently with crude oil during well flow-back continues to be flared to ensure safety of all well-site personnel. No proppant has been recovered at surface subsequent to the milling operations and initial well bore clean out. No evidence of formation water has been seen at surface during the flow-back and this is interpreted to support Oilex’s hypothesis that formation water production is not occurring. The well planning including flow-back and clean-up was predicated upon gas and condensate and the recovery of crude oil and gas may influence the duration required for Cambay-77H to clean-up prior to commencement of any production testing. Samples of the oil, gas and water have been collected for laboratory analysis. These analyses will assist in determining the fluid properties being recovered from the well. During flow-back operations the following activities have been completed which have necessitated shutting in the well or limiting flow: - Change of frac tree to the standby frac tree because of leak issues - Completed two runs to the toe of the well with the coiled tubing unit - Preliminary build up surveys of wellhead pressure The coil tubing unit, which was retained at Cambay-77H site as a precaution, has now been demobilised along with other ancillary equipment, reducing the daily operating costs. Oilex will advise the market of a stabilized flow rate via a production test once frac fluid return and clean-up operations have been completed.