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Oilex Ltd (OEX)

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Tuesday 15 June, 2010

Oilex Ltd

RELINQUISHMENT OF OMAN BLOCK 56


15 June 2010


RELINQUISHMENT OF OMAN BLOCK 56

Oilex Ltd (ASX/AIM: OEX) advises that the Joint Venture covering onshore Block
56 in Oman (Oilex 25% interest and operator) has given notice of its intention
to relinquish the entire Block 56 Contract Area following discussions with the
Oman Ministry of Oil and Gas (MOG).

The decision to relinquish Block 56, which has been made in accordance with the
Exploration and Production Sharing Agreement (EPSA), follows a detailed review
of the prospectivity of the Block following exploration activities conducted
over the past four years.

On behalf of the Block 56 Joint Venture, Oilex Oman Limited (as Operator) will
proceed to close down Joint Venture activities to the mutual satisfaction of
the MOG and the Joint Venture at the earliest reasonable date. The Joint
Venture appreciates the cooperation of the MOG that has been extended in this
regard.

The amount the Joint Venture has incurred on exploration and appraisal
activities to date is in excess of the amount required to be expended under the
EPSA.

The decision to relinquish Block 56 is consistent with Oilex's increasing focus
on its onshore assets in India, its offshore exploration acreage in the North
West Shelf of Western Australia and new ventures opportunities in India and
South East Asia.

Background

Block 56 is located onshore in South Oman. The Government of the Sultanate of
Oman awarded the block to the Joint Venture in 2006 with the EPSA signed on 28
June of that year.

Three small discoveries were made in Block 56 arising out of the subsequent
work program that was completed (Sarha-1, Ghadaq-1, Al Jumd-1). The Joint
Venture has determined that those discoveries are not commercial to develop
under the terms of the EPSA due to their small field size or heavy oil
characteristics.

In recent months the Joint Venture has closely reviewed the remaining
prospectivity of Block 56. The Joint Venture has determined that the
exploration plays have been adequately tested and that further exploration
activities are not commercially justified on the basis of prospect size and
likely oil type. As a result the Joint Venture has determined to notify the MOG
of their intention to voluntarily relinquish Block 56.

The participating interests in Block 56 are as follows:

Joint Venture Party                                    Participating Interest  
                                                                               
Oilex Oman Ltd (Operator)                                       25%            
                                                                               
Videocon Industries Limited                                     25%            
                                                                               
GAIL (India) Limited                                            25%            
                                                                               
Bharat Petroleum Corporation Limited                           12.5%           
                                                                               
Hindustan Petroleum Corporation Limited                        12.5%           


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 30 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 37 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.

.

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

                                                                               
                              ABN 50 078 652 632                               

Level 2, 50 Kings Park Road West Perth WA 6005 Australia, PO Box 588 West Perth
                               WA 6872 Australia                               

           Telephone: (+61 8) 9485 3200 Facsimile: (+61 8) 9485 3290           

                Email: oilex@oilex.com.au Web: www.oilex.com.au