Oilex Ltd (ASX: OEX)

Timor Sea Drilling Update - Lor�-1 Well

Oilex Ltd (ASX/AIM: OEX) advises that on the Lor�-1 well, the first of a 2 well program in the Timor Sea contract area JPDA 06-103, the initial wire line run has been completed after the well reached total depth at 3,581 metres. The well intersected the objective Elang and Plover formations close to prognosis and minor oil shows were observed in the Elang section. Preliminary evaluation indicates that there are zones with limited oil saturation in the Elang formation which will be evaluated with further wire line logging.

All depths refer to depth below rig rotary table

After finishing the Lor�-1 well, the "Songa Mercur" will move to the Lolotoe prospect. Lolotoe is a robust 3 way dip faulted anticline having about 300 metres of vertical relief. The prospect is targeting a mean prospective oil resource of 90 million barrels (100% basis) in the primary objective Elang/Plover formations.  The water depth at the proposed well location is 105 metres.

The Joint Venture participating interests in JPDA 06-103 are:

(1)     Pan Pacific Petroleum (JPDA 06-103) Pty Ltd has recently signed conditional farmin deals with Videocon JPDA 06-103 Limited, Bharat PetroResources JPDA Ltd and GSPC (JPDA) Ltd to acquire a 15% participating interest in JPDA 06-103.

Yours sincerely,

B. H. McCarthy

Managing Director

For further information, please contact:

Ray Barnes                Technical Director, Oilex Ltd                 Tel. +61 8 9485 3200        (Western Australia)

Archie Berens            Director Pelham Public Relations          Tel. +44 20 7337 1509      (United Kingdom)

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 29 years experience in petroleum geology. The estimates of hydrocarbons in place were reviewed by Ray Barnes B.Sc. (Hons), the Technical Director of Oilex Ltd who has over 35 years experience in petroleum geology and is a member of the AAPG. Mr Barnes reviewed this announcement and consents to the inclusion of the estimated hydrocarbons in place in the form and context in which they appear. The resource estimates contained in this report are in accordance with the standard definitions set out by the Society of Petroleum Engineers, Petroleum Resources Management System, 2007. Further information is available at www.spe.org.

Oilex's nominated advisor in relation to the AIM market is RFC Corporate Finance Ltd, contact: Stuart Laing, stuartl@rfc.com.au

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