Oilex Ltd was incorporated in Australia. Its operations are based out of five offices - our Perth head office, where geotechnical work, financial management and control are located; two in India focused on operations and government relations; and one in each in Muscat, Oman and Dili, Timor-Leste for field logistic, administration and finance support and government liaison. Currently Oilex's main country of operation for the purposes of AIM Rule 26 is India.

The Company is directing its efforts towards opportunities that have the potential to provide an exceptional return on investment. Our focus remains on searching for exploration and production assets in the prospective hydrocarbon basins of India , Australia - particularly in the Northwest Shelf and in the Timor Sea, and in the countries of Southeast and South Asia and near Middle East around the rim of the Indian Ocean. With eight permits/interests in prospective basins, Oilex has rapidly compiled a significant portfolio of oil and gas acreage that has a well-balanced mix of risk and reward.

Oilex now has interests in three field re-development and exploration projects in India; two exploration permits offshore Australia; one production sharing contract in the Joint Petroleum Development Area between Timor-Leste and Australia; one exploration and production sharing agreement onshore Oman and one production sharing contract onshore Sumatera Indonesia. Oilex is the operator of joint ventures comprising major Indian energy companies in all areas save for Indonesia. In Indonesia Oilex is non operator in a joint venture with an Indonesian company.

Website

http://www.oilex.com.au/index.cfm


Quarterly Report ( 31st October 2012 )

http://tinyurl.com/9ge6tx3

7 July 2015
ASX: OEX
AIM: OEX

ASX Voluntary Suspension


Further to the announcement of 3 July 2015, Oilex (ASX: OEX, AIM: OEX) ("Oilex", or the "Company") announces that the securities of the Company continue in voluntary suspension on the Australian Securities Exchange ("ASX") pending the release of an announcement regarding the proposed capital raising.

The suspension was granted by the ASX at the Company's request in accordance with the ASX Listing Rules, in order to allow a proposed capital raise to be finalised. The Company anticipates the suspension on the ASX will remain in place until the earlier of such time it makes an announcement to the market in relation to the outcome of the proposed capital raise, or the commencement of trading on 8 July 2015. The Company's ordinary shares will continue to trade on AIM during this period.

http://www.moneyam.com/action/news/showArticle?id=5071182

Oilex Aussie trading suspension continues
Jamie Ashcroft
08:28 07 Jul 2015

The company’s AIM quoted shares continue to be tradeable

Oilex (LON:OEX) told investors that its Australian shares remain suspending from trading pending funding news.

ASX quoted shares were suspended at the company’s request earlier this month to allow a proposed funding to be finalised.

The company said the suspension on the ASX will remain in place until either it makes an announcement to the market of the proposed capital raise, or by July 8 (tomorrow).

In London the company’s AIM quoted shares continue to be tradeable.

Oilex last month began gas sales from its flagship Cambay field in India. Production begun with the Cambay-73 well, which came online with indications that it could potentially exceed expectations.

Output is expected to ramp-up with the ongoing development of the Cambay field; which will see the 77-H well come online, and five additional work-over wells. Gas production is also expected from the start-up of the Bhandut 3 well.

Oilex is targeting ‘cash flow positive operations’ in India by the end of 2015.

SEE LINK FOR FULL ARTICLE


Placement and Rights Issue to Fund 2015/16 Work Programme



· Two tranche placement and underwritten rights issue to raise US$23 million (A$30 million) (Capital Raising)*

· Fully funded to deliver the Cambay Field 2015/16 work programme, a transformational event for the Company

· First tranche placement completed to raise US$1.4 million (A$1.8 million)

· Second tranche placement completed to raise US$16.3 million (A$21.2 million), subject to shareholder approval

· Fully underwritten rights issue to raise US$5.3 million (A$7.0 million)

· Funds will be used for:

o the Cambay and Bhandut Field work programmes for 2015/16 year

o minimum work commitments in the Canning Basin and working capital

· Zeta Resources Limited (Zeta) to acquire approximately 19.6% interest in Oilex



Managing Director of Oilex, Ron Miller, said;

"We are very pleased with the strong support for the Placement and welcome a number of new institutional and sophisticated investors to the Company. Successful delivery of the Cambay Field 2015/16 work programme will be a transformational event for Oilex and India. These wells will continue to demonstrate the potential of the Cambay Basin to deliver indigenous natural gas and oil to India's fast growing economy by using horizontal wells and multistage fracture stimulation technology.

For Oilex, it means increased production and cash flow to build a strong foundation for future growth in shareholder value and returns."



For and on behalf of Oilex Ltd
Ron Miller

Managing Director

http://www.moneyam.com/action/news/showArticle?id=5071834

Oilex Proposes Raising AUD30 Million Via Placing, Rights Issue (ALLISS)
Alliance News 7 July, 2015 | 3:39PM

LONDON (Alliance News) - Oilex Ltd Tuesday said it has conducted a placing to raise AUD1.8 million and will seek shareholder approval to conduct a further, larger placing to raise another AUD21.2 million and a rights issue for a further AUD7.0 million.

Oilex is aiming to raise a total of AUD30 million under its proposals.

The company, under its ASX listing, has issued 45.4 million new shares at AUD0.041 per share to raise the AUD1.8 million, roughly USD1.4 million.

Oilex did not need shareholder approval to conduct the placing. However, Oilex will seek approval from shareholders to issue a second tranche of shares, consisting of a further 287.3 million new shares at AUD0.041 per share and another 225.5 million new shares at AUD0.0418 per share to raise a combined AUD21.2 million, roughly USD16.3 million.

Under that second tranche, the 225.5 million new shares at AUD0.0418 will be issued to Zeta. Zeta is paying the higher price in consideration of a deferred settlement date for those shares of up to five months from the general meeting where shareholders will vote on the second tranche, it said.

On completion of the capital raising, if approved, Zeta will hold approximately 19.6% of the expanded shares in issue.

"This deferred settlement is not expected to impact the timing of the Cambay and Bhandut Field 2015/16 work programmes," said Oilex.

The company is also separately undertaking a renounceable rights issue to all eligible shareholders to enable eligible shareholders to have the opportunity to participate in the capital raising process at the same price as the first tranche at AUD0.041 per share.

That rights issue is fully underwritten and expected to raise a further total of AID7.0 million or USD5.3 million via the issue of 169.5 million new shares on the basis of 1 new share at AUD0.041 for every 4 shares currently held by shareholders, it said.

The meeting for shareholders to vote on the company's plans will take place on August 12.

Oilex shares were down 4.4% to 2.15 pence per share on Tuesday afternoon.

By Joshua Warner; joshuawarner@alliancenews.com; @JoshAlliance

Oilex unveils plans for major US$23mln recapitalisation
Jamie Ashcroft
16:11 07 Jul 2015

Proceeds will enable a 'transformational' work programme in India and Australia, Oilex says

Oilex (LON:OEX) has unveiled plans to raise US$23mln (A$30mln) through the sale of new shares, the majority of which will be bought by Australian group Zeta Resources.

It represents a major recapitalisation for the company, which at a price of 2.12p has a current market value of just under £14.5mln.

Proceeds of the share sale will be used to fund a 'transformational' work programme over the course of 2015 and 2016, Oilex told investors.

Not only will the funding support the expansion of gas producing operations at the Cambay field in India, including two new wells, it will also allow Oilex to complete its minimum work commitments in the Canning basin, in Western Austalia.

Ron Miller, Oilex chief executive, in a statement said: “Successful delivery of the Cambay Field 2015/16 work programme will be a transformational event for Oilex and India.

“These wells will continue to demonstrate the potential of the Cambay Basin to deliver indigenous natural gas and oil to India's fast growing economy by using horizontal wells and multistage fracture stimulation technology.

“For Oilex, it means increased production and cash flow to build a strong foundation for future growth in shareholder value and returns."

There will be an initial US$1.4mln (A$1.8mln) share placing to sophisticated investors will provide a quick injection of capital.

A subsequent US$16.3mln (A$21.2mln) transaction will see Zeta take a 19.6% stake in AIM and ASX listed Oilex, meanwhile, existing investors also have the opportunity to subscribe for new shares via an underwritten US$5.3mln (A$7mln) rights issue.

Shares created though the major recapitalisation will represent around two thirds of the enlarged company.

New shares sold via the share placings will be priced at 2p (or 4.1 cents), whereas the rights issues works out at 2.04p per share.

Shareholders will be able to buy one new Oilex share for every four existing shares they own.

The Zeta share placing will be subject to approval from existing shareholders, and it is anticipated that a vote will take place at an EGM pm August 12.

NOTICE OF GENERAL MEETING

Annexure A "Explanatory Memorandum" (attached)

should be read in conjunction with this Notice of Meeting.

http://www.moneyam.com/action/news/showArticle?id=5072131

FULL ANNOUNCEMENT FROM LINK AT BOP.

8 July 2015

Dear Option Holder

Oilex Ltd - Renounceable rights issue


As announced today, Oilex Ltd (Oilex) is undertaking a renounceable pro-rata offer of new ordinary shares in Oilex (New Shares) at an offer price of A$0.041 (or £0.02 for Depository Interest holders) per New Share to raise approximately A$7.0 million (before costs) (Rights Issue). The Rights Issue is being made on the basis of 1 New Share for every 4 Oilex shares held at 5.00pm (AWST) on 14 July 2015 or in the case of Depositary Interest holders, 5.00pm (GMT)) on 13 July 2015 (the Record Date). The Rights Issue is being fully underwritten by Patersons Securities Limited.

http://www.moneyam.com/action/news/showArticle?id=5072227

ASX Announcement
9 July 2015
ASX: OEX
AIM: OEX

Rights Issue - Letter to Shareholders and revised Timetable

Attached is a copy of the letter being sent to Oilex Ltd shareholders today in connection with the renounceable rights issue announced yesterday.

The timetable for the rights issue has been updated. The updated timetable is set out in the attached letter.

Yours faithfully
Chris Bath
Company Secretary

Rights Issue – Letter to Shareholders and revised Timetable

http://www.moneyam.com/action/news/showArticle?id=5073039

Missed this from yesterday:

Oilex boss on transformational programme and cash generation (video)

Published on 9 Jul 2015


Ron Miller, chief executive of Oilex (LON:OEX), tells Proactive Investors about the multi-million US dollar recapitalisation that allows the oil and gas exploration and production company to ramp up production in India, service local gas markets and enter the national grid.

Miller expects a lot of activity over the next 18 months as Oilex targets becoming operationally cash flow positive in India by the end of 2015 on the back of 340 barrels of oil equivalent per day of production from the Cambay and Bhandut fields. Oilex will also be spudding Cambay 78 and Cambay 80 and drilling those wells to completion.

https://www.youtube.com/watch?v=cdNwlvZqyEY

15 July 2015
ASX: OEX
AIM: OEX

Issue of Shares under First Tranche Placement


As announced on 8 July 2015, Oilex Ltd (Oilex) is undertaking a capital raising to raise approximately A$30 million. Oilex is pleased to announce that the First Tranche Placement of 45 million new ordinary shares (Placement) under the Company's existing placement capacity pursuant to ASX Listing rule 7.1, at an issue price of A$0.041 to sophisticated investors to raise A$1.8 million (before issue costs) has been successfully completed.

The funds raised from the Placement will be applied towards the 2015/16 work programme in India, minimum work commitments in the Canning Basin and working capital. The 2015/16 work programme in India includes 2 horizontal multistage fracture stimulated production wells and 5 workovers of legacy wells at the Cambay Field designed to start production of the previously announced independently classified Reserves. This programme is expected to significantly increase Oilex's production and cash flow after the 2 production wells, Cambay-78H and Cambay-80H, are brought online.

Managing Director of Oilex, Ron Miller, said;

"We are very pleased with the strong support for the Placement and welcome a number of new institutional and sophisticated investors to the Company. Successful delivery of the Cambay Field 2015/16 work program will be a transformational event for Oilex and India. These wells will continue to demonstrate the potential of the Cambay Basin to deliver indigenous natural gas and oil to the India's fast growing economy by using horizontal wells and multistage fracture stimulation technology.

For Oilex, it means increased production and cash flow to build a strong foundation for future growth in shareholder value and returns."

http://www.moneyam.com/action/news/showArticle?id=5076033

Oilex Issues Shares In First Stage Of AUD30 Million Fundraising (ALLISS)
Alliance News 15 July, 2015 | 9:04AM
By Joshua Warner

LONDON (Alliance News) - Oilex Ltd Wednesday said it has issued the first tranche of shares under its AUD30 million capital raising.

The India-focused oil company said it has completed the issue of 45.0 million new shares in the company at AUD0.041 per share to "sophisticated investors" to raise a total of AUD1.8 million.

That is part of the company's larger capital raising announced earlier in July. The first stage is now complete and will be followed by a further, larger placing to raise another AUD21.2 million and a rights issue for a further AUD7.0 million to reach the ultimate AUD30 million target.

Oilex did not need shareholder approval to conduct the first placing, but will need approval to issue a second tranche of shares, consisting of a further 287.3 million new shares at AUD0.041 per share and another 225.5 million new shares at AUD0.0418 per share to raise a combined AUD21.2 million, roughly USD16.3 million.

Under that second tranche, the 225.5 million new shares at AUD0.0418 will be issued to Zeta Resources Ltd. Zeta is paying the higher price in consideration of a deferred settlement date for those shares of up to five months from the general meeting where shareholders will vote on the second tranche.

On completion of the capital raising, if approved, Zeta will hold approximately 19.6% of the expanded shares in issue. Zeta is an active, resources focused holding and development company listed on the ASX, and is 85% owned by Utilico Investments Ltd.

The company also will separately undertaking a renounceable rights issue to all eligible shareholders to enable shareholders to have the opportunity to participate in the capital raising process at the same price as the first tranche at AUD0.041 per share.

That rights issue is fully underwritten and expected to raise a further total of AUD7.0 million, or USD5.3 million, via the issue of 169.5 million new shares on the basis of 1 new share at AUD0.041 for every 4 shares currently held by shareholders.

The total AUD30 million capital raising will be used for the company's work programme at the Cambay oilfield in India during 2015 and 2016. The 2015/16 work programme in India includes two horizontal multistage fracture stimulated production wells and five workovers of legacy wells.

"This programme is expected to significantly increase Oilex's production and cash flow after the two production wells, Cambay-78H and Cambay-80H, are brought online," said Oilex Wednesday. Oilex shares were up 4.1% to 2.08 pence per share on Wednesday morning.

16 July 2015
ASX: OEX
AIM: OEX

JPDA 06-103 Joint Venture

Further to the Announcement of 14 May 2015, Oilex Ltd ("Oilex"), in its capacity as Operator, on behalf of the Joint Venture Participants in the Joint Petroleum Development Area ("JPDA") 06-103 Production Sharing Contract ("PSC") has received a Notice of Termination and Demand for Payment ("Notice") from the Autoridade Nacional do Petroleo ("ANP").

The Notice accords with details set out in the previous Announcement.

The parties continue to discuss the financial liability of the Contractor upon termination.

http://www.moneyam.com/action/news/showArticle?id=5076905

JPDA 06-103 Joint Venture (14th May 2015)

ASX Announcement
17 July 2015
ASX: OEX
AIM: OEX

Dispatch of Offer Booklet and Entitlement and Acceptance Form


Oilex Ltd is pleased to announce that in respect of the pro-rata renounceable entitlement offer announced on 7 July 2015, the following documents have now been dispatched to shareholders:

· Offer Booklet dated 15 July 2015; and

· Entitlement and Acceptance Form.

A copy of these documents is attached.

http://www.rns-pdf.londonstockexchange.com/rns/3383T_-2015-7-17.pdf


http://www.moneyam.com/action/news/showArticle?id=5077655

17 July 2015

Dear Shareholder


Oilex Ltd - Renounceable Rights Issue


Background

As announced on 7 July 2015, Oilex Ltd (Oilex) is undertaking a capital raising to raise approximately A$30 million. As part of the capital raising Oilex is undertaking a renounceable pro-rata offer of new ordinary shares in Oilex (New Shares) at an offer price of A$0.041 (or £0.02 for Depository Interest holders) per New Share to raise approximately A$7 million (before costs) (Rights Issue). The Rights Issue is being made on the basis of 1 New Share for every 4 Oilex shares held at 5.00pm (AWST) (or in the case of Depositary Interest holders, 5.00pm (GMT)) on 14 July 2015 (the Record Date). The Rights Issue is being fully underwritten by Patersons Securities Limited.

The net proceeds of the Rights Issue will be used primarily to fund part of the Cambay and Bhandut Field work programmes for the 2015/16 year, minimum work commitments in the Canning Basin and general working capital purposes.

This letter is to inform you about the Rights Issue, and to explain why you will not be able to subscribe for New Shares under the Rights Issue. This is not an offer to issue New Shares to you, nor an invitation for you to apply for New Shares. You are not required to do anything in response to this letter.

More from link below:

Oilex Ltd - Renounceable Rights Issue

Oilex proceeds with A$7mln rights issue
08:36 17 Jul 2015
Jamie Ashcroft

The rights issue is part of a larger financing round

Oilex(LON:OEX) has publicised the details of its proposed A$7mln shareholder rights issue which forms part of a larger A$30mln funding.

Cash proceeds from the fund raise are earmarked for a major work programme to scale up the Cambay and Bhandut gas fields in India.

Shareholders have the right to purchase one new Oilex share, priced at 4.1 Australian cents, for every four existing shares they own.

Only shareholders in Australia, New Zealand or the United Kingdom are eligible to participate.

The record date for the rights issue was July 14 (so the above terms are applicable to shareholdings on that date) and shareholders have until 5pm Western Australian time on July 28 to take up their right to buy shares.

Earlier this week Oilex completed an initial A$1.8mln share placing.

A further placing of shares to Zeta Resources will complete the $30mln funding round.

Zeta is acquiring investing A$21.2mln in return for a 19.6% stake in the company.

20 July 2015
ASX: OEX
AIM: OEX


Capital Raising - Update

On 7 July 2015, the Company announced that it was undertaking a capital raising package to secure approximately A$30 million (before costs) (Capital Raising). A component of the Capital Raising included approximately A$9.4 million through the issue of 225,490,196 Shares to Zeta Resources Limited (Zeta Deferred Shares) at A$0.04182 per Share.

As announced on 8 July 2015, Oilex is seeking Shareholder approval at a General Meeting on 12 August 2015 for the issue and allotment of the Zeta Deferred Shares within five (5) months after the General Meeting, this required the Company to seek an ASX waiver of Listing Rule 7.3.2 which stipulates all shares must be issued no later than three (3) months after the date of the General Meeting.

The Company has been notified this waiver will not be granted.

Subject to shareholder approval, the Company will now proceed to issue and allot the Zeta Deferred Shares within three (3) months after the date of the General Meeting in accordance with Listing Rule 7.3.2

For and on behalf of Oilex Ltd

Ron Miller
Managing Director

http://www.moneyam.com/action/news/showArticle?id=5078478

21 July 2015
ASX: OEX
AIM: OEX


Cambay Field: Production Update

· Cumulative gas sales of 5.12 MMscf from Cambay-73 for 22 days to 17 July 2015

· Cambay-73 operating at 100% availability

· Average daily gas demand in low pressure network has increased from ~250Mscfd to ~320Mscfd

· Cumulative total oil/condensate production of 336 bbls during same period

Oilex Ltd is pleased to provide an update from the Cambay Field subsequent to the commencement of gas sales from Cambay-73 into the low pressure network. Cambay-73 averaged ~ 54boepd during 22 days from 26 June 2015. Cambay-73 has achieved 100% operational availability during this period. Its condensate to gas ratio (CGR) is calculated to be 58bbls per MMscf, which is 26% higher than the CGR used in the Independent Reserves Report from RISC Operations Pty Ltd. If sustained over time and in other wells, this may have a positive impact on the condensate/light oil included in the Reserves. Please refer to the Oilex Announcement of 16 April 2015 for details of Oilex's independently classified Reserves and Resource base which includes 2P gas Reserves of 206 Bcf and 2P oil Reserves of 8 MMbbls.

Since the introduction of gas from the Cambay Field into the local low pressure network, the average daily demand has increased by 28% to approximately 320Mscfd. In light of the increasing local gas demand, the Joint Venture is considering some operational efficiencies to better service the market and encourage further demand growth.

Managing Director of Oilex, Ron Miller, said;

"Ongoing gas production from Cambay-73 and increasing demand for domestically produced and competitively priced gas continues to support Oilex's objective of achieving positive cash flow from operations in India during 2015. The availability performance of the Cambay-73 facilities to meet daily demand is particularly pleasing. Oilex remains focused and today's news demonstrates that it continues to deliver on its plan of production, near-term cash flow and reserves growth to create a sustainable business in the midst of a robust and supportive domestic market."

Shareholder and Investor Conference Call

To discuss the recently announced Capital Raise transaction and Oilex's exciting upcoming work programme, the Company is pleased to invite investors to a conference call with the Managing Director and Chief Financial Officer at 4pm (WST) / 9am (BST) on 23 July 2015. Details can be obtained from

· Maura Hinds at oilex@oilex.com.au / +61 8 9485 3200 in Australia or

· Alex Aleksandrov at alex.aleksandrov@vigocomms.com / +44 207 016 9598 in the UK.

For and on behalf of Oilex Ltd

Ron Miller

Managing Director

http://www.moneyam.com/action/news/showArticle?id=5079279

Oilex is meeting rising demand for Cambay’s gas
Jamie Ashcroft
08:15 21 Jul 2015

Cambay benefits from rising demand and premium gas prices


Oilex aims to be cash flow positive from operations in India later this year


Oilex (LON:OEX) has told investors that the availability of the Cambay-73 well, which began production recently, continues to meet daily demand from gas customers locally in India’s Gujarat State.

The company revealed that Cambay-73 averaged 54 barrels oil equivalent per day in the 22 days since production began in June. It has been operationally available 100% of the time.

It was also noted that the well’s condensate-to-gas ratio (CGR) equated to 58 barrels per million cubic feet, which Oilex says is about 26% better than the assumptions in a prior independent assessment of the project.

Should this level be maintained over longer period of time, and be replicated in other well, the company believes it may have a positive impact on the condensate and light oil volumes included in the field’s reserves; which currently amount to 206bn cubic feet of gas and 8mln barrels of oil.

Local economics, and strong gas demand, mean the company achieves a premium price compared to international markets.

Oilex says demand for gas continues to grow in the region, and since Cambay came online it has risen by about 28% to 320,000 cubic feet per day.

"Ongoing gas production from Cambay-73 and increasing demand for domestically produced and competitively priced gas continues to support Oilex's objective of achieving positive cash flow from operations in India during 2015,” said chief executive Ron Miller.

“The availability performance of the Cambay-73 facilities to meet daily demand is particularly pleasing.

“Oilex remains focused and today's news demonstrates that it continues to deliver on its plan of production, near-term cash flow and reserves growth to create a sustainable business in the midst of a robust and supportive domestic market."

Oilex’s US$23mln will kick start Indian exploration

Oilex is tipped to deliver substantial volume and cash flow growth over the next five to six years.

Stewart Dalby
10:34 27 Jul 2015

These are exciting times for Oilex (LON:OEX). The company’s recently announced a major US$23mln recapitalisation should be a significant step forward in a game-changing process for the ASX and AIM-quoted junior.

Oilex’s chief executive officer (CEO) Ron Miller said: “Proceeds of the share sale will be used to fund a ‘transformational’ work programme over the course of 2015 and 2016.”

London broker Westhouse’s oil and gas analyst Mark Henderson said that following the fund-raise and the earlier ‘proof of concept’ well success at the Cambay field, he now expects Oilex will deliver substantial volume and cash flow growth over the next five to six years.

He predicts Oilex can grow gross production from a standing start to 60,000 barrels of oil equivalent within this timeframe.

The proof of concept well Henderson refers to is the Cambay-77H well on the Cambay field in Gujarat state in energy-starved India.

This well came good last year. Cambay-77H was spudded in March 2014 and production testing was successfully completed late in 2014 with 43mln standard cubic feet of gas (mmscf) and 3,372 barrels of oil (bbls) sold to a local refinery.

It was a breakthrough well because it was unconventional and proved for the first time that fracking (fracture stimulation) and horizontal drilling could work in India.

This success followed a major drilling disappointment in 2012 that cast Oilex into a wilderness of a share price collapse and shareholder disenchantment.

The latest fund-raise involves an initial US$1.4mln (A$1.8mln) share placing to sophisticated investors that will provide a quick injection of capital.

A subsequent US$16.3mln (A$21.mln) transaction will see ASX-listed Zeta Resources take a 19.6% stake in an enlarged Oilex. Meanwhile existing investors also have the opportunity to subscribe for new shares via an underwritten US$5.3mln (A$7mln) rights issue.

New shares sold via the share placings are being priced at 2p (or 4.1 cents) whereas the rights issue works out a little bit more at 2.04p at a share.

The Cambay field was discovered and developed initially by Oil and Natural Gas Corporation of (ONGC) of India in 1957-58 and enjoyed modest production success before being shut-in in 1991.

Oilex became involved with Cambay in 2005 and by 2007 it held a 45% in the field stake and was the operator in a joint venture (JV) with the Gujarat State Petroleum Corporation (GSPC) which held the remaining 55%.

Oilex and GSPC completed five vertical wells and two vertical fracture programmes on the project.

Again, there was only modest production success, mostly from the first well, Cambay-73. This well’s target was the shallow Miocene basal sandstone.

But Oilex’s CEO at the time, Bruce McCarthy, believed the deeper tight Eocene zones could, with the aid of horizontal drilling and multi-stage fracking techniques that have revolutionised shale drilling in North America, yield many more barrels than were forthcoming from Cambay-73.

After indifferent results from the Cambay 74 and Cambay 75 wells the group decided to go for its first ‘proof of concept’ well and, in fact, the first horizontally drilled and fracked well in India, with the Cambay- 76H well.

McCarthy was ahead of his time. The well threw up a number of complications. Technical problems led to the well being suspended in May 2012. There was much talk that it was all very well fracking in the flat plains of Texas in the US but clearly more complicated in India. American geologists seemed to have a definite advantage in knowing about how fracking could work.

Miller, who is an American, became a director of Oilex in 2009 and eventually CEO in 2013. He determined he would bring some American fracking expertise to Oilex’s operations and the success of Cambay-77H was the result.

So, what are the next steps? A recent independent reserves report estimated that the Cambay project had some 43.3mln barrels of oil equivalent (mmboe) which could be classified as proven and probable (2P) as well as about 177mmboe contingent resources.

The joint venture partners are fully funded to get cracking on their work programme, which includes two firm new wells, two contingent wells and five work-over wells.

Andrew Sinclair, the oil and gas analyst at PAC Partners, says in a recent note that now that processing facilities at Cambay-73 have been completed the vertically drilled well will be put back into production at a rate of between 50 to 60 barrels of oil equivalent per day (boepd).

Also in the current quarter the Cambay-77H well will be tied-in to the low pressure gas pipeline. The work-over of existing wells will start in the fourth quarter (Q4) 2015.

The first of the new wells Cambay -78H will be spudded (the start of drilling) in Q4 2015 as will the second new well Cambay Cambay-80H.

All this should mean Oilex exits 2015 with production of 400 boepd, before output really starts ramping up in late 2016. Sinclair agrees that Oilex should be producing a multi-thousand barrels of oil equivalent within the next few years but, unlike Henderson at Westhouse, feels output over the period will amount to 90,000 boe rather than 60,000 boe (360mmcf gas).

Most of this will be gas, which is handy for cash flow as there is a strong local market. India is the world’s fourth largest energy consumer. Gujarat is an industrialised state with existing energy infrastructure and strong local demand for gas.

A gas deficit (India imports 30% of its gas) ensures that OiIex will achieve a price premium for the gas it delivers at around US$8 + per million British thermal units (mmBtu) versus a government pricing policy of US$5 per mmBtu.

The cost of imported liquefied natural gas (LNG) is US$8.50 to US$10 per mmBtu, effectively providing a floor price for domestic gas sales.

PAC says Oilex’s shares are very high risk, but has set a risked net asset value (NAV) based target price of A$0.09 (4.28p). This is more than double the current share price of A$0.04 (1.90p).

28 July 2015

Dear Shareholder,

Capital Funding Program



I am writing to you about your Company's announcement on 7 July 2015, regarding a capital funding program which is currently in progress. You should have recently received a Notice of Meeting for a General Meeting of Oilex shareholders to be held on 12 August 2015, as well as an Offer Booklet pertaining to a fully underwritten rights issue for eligible shareholders. The General Meeting and the rights issue are components of a A$30 million capital funding program by Oilex to fund its 2015/16 work programme in India, minimum work commitments in the Canning Basin and working capital. This growth opportunity is underpinned by the recent Independent Reserve Classification of gross proven plus probable (2P) reserves of 206 Bcf of natural gas and 8 million bbls of condensate (light oil) in the Cambay Field, India.


The major part of the fundraising requires your voting support. The Board believes that the resolutions to be proposed at the General Meeting are in the best interests of the Company and Shareholders as a whole. Accordingly, the Directors unanimously recommend that all Shareholders vote in favour of the resolutions, as they intend to do so, in respect of their own beneficial shareholdings. The purpose of this letter is asking you to vote in favour of the resolutions proposed by your Board as set out in the Notice of Meeting.

It is important to understand why this transaction is very much in your interest and the interests of all stakeholders as Oilex progresses its transformation into a sustainable business based upon production, cash flow and reserves growth at the Cambay Project in Gujarat State, India. Your Board has reviewed a range of different funding structures and opportunities before selecting a structure of a two Tranche Placement and fully underwritten renounceable one (1) for four (4) rights issue for existing Shareholders to secure the requisite funding package totalling A$30 million. At the time of writing this letter, Tranche 1 is complete and the fully underwritten rights issue is in progress and is expected to be completed before the General Meeting.

Oilex has recently announced its first local market gas sales from our Cambay Field in India, a significant milestone for the business towards growing revenue and essential to being operationally cash flow positive in India, a key corporate milestone for 2015. In addition to Cambay-73, other gas production wells coming online during 2015 will include Cambay-77H and Bhandut-3. India has a fast growing economy where natural gas attracts a premium price and the demand is strong, which should allow Oilex to quickly expand its business.


The fundraising will facilitate the following approved work programmes:

· Cambay Field

o Drilling and completion of two horizontal multistage production wells (Cambay-78H and Cambay-80H)

o Workover operations on five existing wells

o Engineering studies for, amongst other things, a larger development of 50MMscfd gas production on plateau

· Bhandut Field

o Gas production facilities to support gas sales from Bhandut-3 well

· Canning Basin - Wallal Graben Play Fairway

o Technical work to develop a leads and prospects portfolio to facilitate a farm-out

It is anticipated that the successful delivery of the Cambay Field 2015/16 work programme will be a transformational event for Oilex as we deliver significantly enhanced commercialisation of our hydrocarbon reserves.


By voting to support the fundraising process either by Proxy or in person at the General Meeting on 12 August, you will ensure that your Company has the necessary funds available to undertake its growth plans and create sustainable value for all Shareholders and Stakeholders.

Thank you for your ongoing support and we look forward to growing our Company together.

For and on behalf of Oilex Ltd

Ron Miller

Managing Director

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