Oilex (OEX)

Shares / Stock Code

OEX

Stock Exchange / Sharemarket

ax

Oilex (OEX) engages in oil and gas exploration activities predominantly in Australia. The company’s focus remains on searching for exploration and production assets in the prospective hydrocarbon basins of India and Australia, particularly in the Northwest Shelf and Timor Sea, in countries in Southeast and South Asia and near the Middle East on the rim of the Indian Ocean. The company was listed on the Australian stock market (ASX) in October 2003. OEX's head office is situated in West Perth.

Oilex has signed alliance agreements with three of India's large public sector companies to participate jointly in oil and gas exploration and production projects in Australia and India. Oil is sold to the nearest refinery at the spot price, while gas tends to be sold on long-term contracts with price escalators linked to inflation. Because of the global nature of the oil market, every oil producer is a competitor. For gas producers, competition is much more localised and depends on pipeline access to markets. Key competitors include Rio Tinto (RIO), BHP Billiton (BHP), CH4 Gas Ltd (CHX) and Bounty Oil & Gas (BUY).

Oilex Western Australia Projects

As part of a developing gas strategy with their Indian partners, Oilex, as Operator on behalf of a bidding group with large Indian companies successfully bid for Application Area W05-11 in April 2006. The permit is now designated as WA-388-P. The block lies to the north of the North Rankin, Goodwin and Perseus gas and condensate fields currently being produced for the domestic and LNG gas markets by Northwest Shelf Ventures and to the north of the large gas resources discovered in the Janz/lo area.

The Joint Venture comprises Oilex (Operator, 20%), GSPC (20%), Videocon (20%), Hindustan Petroleum Corporation Ltd (20%) and Bharat Petroleum Corporation Ltd (20%). Following a period of re-evaluation of existing data, a 1000 sq km 3D seismic survey was acquired in 2008. Processing of these data will be finalised in 1Q 2009 and an evaluation of the gas potential carried out. A decision to enter the second period of the permit and drill the best prospect identified will be taken later in 2009.