Oilex updates West Kampar PSC

The following is an excerpt from Australian firm Oilex Limited on Central Sumatra exploration block project, taken from the quarterly report ended March 31, 2011, released Wednesday.

West Kampar PSC, Central Sumatra
(Oilex - 45% + further 22.5% secured*)

? Oilex continues to seek a commercial resolution to the dispute and recent discussions are making progress to that end. At the same time, Oilex intends to protect its participating interest in the West Kampar PSC and to pursue enforcement of its Arbitration Award as appropriate.

Background
? On 24 June 2010, the International Court of Arbitration of the ICC (International Chamber of Commerce) found in favour of Oilex?s wholly owned subsidiary, Oilex (West Kampar) Limited, in its claim against PT Asiabumi Petroleo (Asiabumi) for the recovery of US$4.6 million that is owed to Oilex. Asiabumi is the parent company of the Operator (PT Sumatera Persada Energi - SPE).

? Ollex commenced the ICC Arbitration against Asiabumi in Singapore in April 2009 following the failure of SPE in early 2009 to repay a debt owing to Oilex under a previous agreement between Oilex and SPE. SPE?s obligations to repay the debt were secured by a parent company guarantee granted by Asiabumi to Oilex in 2008.

? The Award granted in Oilex?s favour took effect immediately. Oilex is pursuing the recovery of the monies owing under the Award.

? Oilex maintains that it is further entitled to have assigned an additional 22.5% to its 45% holding through the exercise of its rights under a Power of Attorney granted by SPE following the failure of SPE to repay the funds due referred to above. The assignment has been provided to BPMigas but has not yet been approved or rejected. If the debt due to Oilex is satisfied, it will not pursue this assignment. (end of excerpt)