Oilex updates Indonesian drilling operation

(The following is an excerpt taken from Australian firm Oilex Ltd.?s drilling operation update released on Tuesday.)

Pendalian-3 - West Kampar PSC - Indonesia
Oilex advises that following the perforation of the interval 279 - 292 metres below KB, swab testing operations have been completed at Pendalian-3 to determine the flow potential for Drill Stem Test (DST) #4.

Once down-hole pressure gauges have been recovered, DST #5 will be conducted over the interval 241 - 252 metres below KB.

A total of 45 barrels of 25.2? API crude oil was recovered from swabbing operations during DST #4. The quality of the crude oil in Pendaiian-3 contrasts with the reported recovery of heavier, 18.5 API crude oil from swabbing the equivalent zone in the nearby Pendalian -1 well. Reservoir pressure is very low, in accordance with the very shallow depth of the reservoir at the level of this test. While the operator has estimated a modest potential rate of 86 barrels per day from this zone from preliminary data, the presence of lighter crude is encouraging and further evaluation will be carried to confirm the Productivity Index for this reservoir and to determine whether this zone could be completed as a secondary producer.

Evaluation of pressure data from down-hole gauges recovered during DST #3 is continuing.

Participants in the West Kampar Production Sharing Contract are Oilex Ltd 45% and Sumatera Persada Energi (Operator) 55%. (end of excerpt)