OILEX LTD : Cambay-76H "Tight" Reservoir Well Report No 7

20th July 2011

Company Announcements Office

ASX Limited

4th Floor

20 Bridge Street

Sydney NSW 2000

CAMBAY-76H ?TIGHT? RESERVOIR WELL REPORT NO 7

Oilex Ltd (?Oilex? ASX: OEX, AIM: OEX) advises that the mobilization and rigging up for the large volume multi-stage fracture stimulation of the Y Zone tight gas reservoir is progressing well and all equipment is expected to be on site and rigged up within the next few days.

The demobilisation of the Black Pearl drilling rig is also nearing completion.

After rigging up of the fracture stimulation equipment is completed, a fracture stimulation program comprising 8 stages with two fracture initiation points per stage will commence. The well will then be flowed to surface to clean up, removing stimulation fluids from the well bore prior to conducting the flow test.

The monsoon season has commenced in Gujarat and the progress of operations is contingent on variable weather conditions. To date there have been some minor interruptions to activities due to weather.

Report date	19th July 2011
Status	Mobilising fracture stimulation equipment
Past Week?s Operations	? Demobilising drilling rig ? Mobilising fracture stimulation equipment
Objective	Cambay Eocene ?tight? reservoir Y Zone
Total Depth (TD)	2,740 metres

Note: All depths refer to measured depth below rig rotary table (?MD?)

The participating interests in the Cambay PSC are:

JOINT VENTURE PARTY	PARTICIPATING INTEREST
Oilex Ltd (Operator) Oilex NL Holdings (India) Limited Gujarat State Petroleum Corporation Ltd	30% 15% 55%

ABN 50 078 652 632

Ground Floor, 26 Colin Street, West Perth WA 6005 Australia, PO Box 588 West Perth WA 6872 Australia

Telephone: [phone] Facsimile: ([phone]

Email: [e-mail] Web: www.oilex.com.au

For further information, please contact:

Oilex Ltd [phone] (Western Australia) Bruce McCarthy Managing Director [e-mail]

Ben Clube Finance Director [e-mail]

Ambrian Partners Limited (Nominated Adviser and AIM Broker)

Matthew Einhorn Anthony Rowland	[e-mail] [e-mail]	[phone] [phone]	(UK) (UK)
Read Corporate Nicholas Read	[e-mail]	[phone]	(Western Australia)
Tavistock Communications Paul Youens	[e-mail]	[phone] [phone]	(UK) (UK)
Ed Portman	[e-mail]	[phone]	(UK)

This document may include forward-looking statements. Forward-looking statements include, but are not necessarily limited to, statements concerning Oilex Ltd?s planned exploration program and other statements that are not historic facts. When used in this document, the words such as ?could?, ?plan?, ?estimate? ?expect?, ?intend?, ?may?, ?potential?, ?should? and similar expressions are forward-looking statements. Although Oilex Ltd believes that its expectations reflected in these are reasonable, such statements involve risks and uncertainties, and no assurance can be given that actual results will be consistent with these forward-looking statements.?

2