Quarterly Report December 2016

CAMBAY FIELD, ONSHORE GUJARAT, INDIA

  • Oilex has participated in a formal tender process submitting a conditional offer for an additional 55% interest in the Cambay PSC (Cambay). The offer was in response to a competitive bid process initiated by Gujarat State Petroleum Corporation Limited (GSPC).
  • Oilex is proposing a revised work programme takingadvantage of a lower cost opportunity to analyse core data from existing well C-23z.
  • Application has been made with the government to recommence production from C-73 and C-77H
  • Two workovers are planned for the first half 2017.
  • Planning continues for the drilling of a new verticalwell.
  • During the quarter, the Joint Venture partnerreleased equivalent $37,350 against outstandingcash calls.

BHANDUT FIELD, ONSHORE GUJARAT, INDIA

  • Following technical and economic reassessment, Bhandut-3 was shut-in from 6 October 2016 due to increased water production.
  • Production for the 5 days averaged 193.5 mscfd, or 33.4 boepd (Oilex net 87.1 mscfd, or 15.0 boepd).
  • During the quarter, the Joint Venture partner released equivalent $58,750 against outstanding cash calls.
  • Application for three-year extension of Petroleum Mining Lease was approved.
  • Potential opportunities for sale of the PSC are being explored.

CORPORATE

  • As part of a cost reduction initiative, the Indian office completed a move to lower cost premises.
  • Significant redundancies and reductions in remuneration were undertaken throughout the Company.
  • The Company has settled its insurance claim, receiving $693,400 in January 2017 in respect of the costs associated with the Zeta Resources Limited litigation.
  • Shareholders approved the adoption of an updated Constitution at the AGM.
  • Cash resources at 31 December 2016 were $1.89 million.

Quarterly Report December 2016