ABN 50 078 652 632

Level 2, 50 Kings Park Road, West Perth WA 6005

Telephone: +61 8 9485 3200 Facsimile: +61 8 9485 3290 E-mail: oilex@oilex.com.au Web Site: www.oilex.com.au

HIGHLIGHTS • Cambay-19Z oil discovery at Cambay Field successfully flowed oil at stabilised rate of 120 barrels per

day in the first in a sequence of drill stem tests. Testing of an additional 12 metre zone with similar characteristics is planned in addition to shallower zones that are also interpreted to be oil bearing.

• Cambay-23Z was drilled and suspended as a potential future gas production well

• Pendalian field resource upgraded to 13.7 million barrels oil in place, with production of 1,800-2,000 anticipated in Q4 2008

• Sarha-1 oil discovery in Oman to be appraised with a well in next phase of drilling anticipated to start August. Oil in place ranges from 20-70 million barrels

• Zero lost time incidents throughout operations centres.

• Retained cash and receivables of approximately A$37.5 million.

CORPORATE DETAILS Board of Directors Principal & Registered Office

Max D.J. Cozijn Non-Executive Chairman Bruce McCarthy Managing Director Ray Barnes Technical Director L. L. Bhandari Independent Director

Level 2, 50 Kings Park Road West Perth WA 6005, Australia Telephone: +61 8 9485 3200 Facsimile: +61 8 9485 3290 Email: oilex@oilex.com.au

Capital Structure

Website: www.oilex.com.au

Ordinary Shares 132,083,885 Share Registry Unlisted Options 37,225,100 Unlisted Performance Rights 1,181,000 Stock Exchange Listing Australian Stock Exchange Code: OEX AIM Market of London Stock Exchange Code: OEX

Security Transfer Registrars Pty Ltd 770 Canning Highway Applecross WA 6153, Australia Telephone: +61 8 9315 2333 Facsimile: +61 8 9315 2233 Email: registrar@securitytransfer.com.au

QUARTERLY REPORT TO SHAREHOLDERS

30 JUNE 2008

For

per

sona

l use

onl

y

OPERATIONS REVIEW

INDIA CAMBAY FIELD, GUJARAT (OILEX OPERATOR - 45%) The purpose of the 2008 Cambay Field drilling program comprising 6 consecutive appraisal /development wells is to gather detailed lithological and reservoir fluid information in the Cambay Field. In combination with the high quality 3D seismic survey over the block and the extensively reworked data from over 60 old wells, Oilex anticipates that the information from the new wells will provide a comprehensive basis for certification of oil and gas reserves at the level of the Oligocene and the Eocene main potential reservoir units and any of the exploration targets that may prove to contain hydrocarbons. The first two wells in the program have been concluded and the third well is drilling ahead. Cambay 23Z, the first in the sequence spudded on 07 March 2008 and was suspended as an intended future gas well. The second well, Cambay-19Z is an oil discovery at the level of the Basal EP IV sandstone. A further interval of 12 metres with similar log response will be tested with a workover rig at the earliest opportunity. The results to date are very encouraging for the broader potential of the deeper zones. The resources for the two main intervals Oligocene OS II and Eocene EP IV have been estimated from the existing data base of wells and 3D seismic and presented in the table below. These estimates do not include oil or gas that may be found in both shallower and deeper potential reservoirs that will be intersected during the drilling program.

# Includes approximately 52 BCF of gas produced to date. mmstb – million stock tank barrels

Gross resource estimates (100% basis) calculated in 2007 using the 3D seismic data set and the existing well data base. Oilex net interest in Cambay PSC is 45%. All 6 appraisal wells will test the Oligocene and Eocene primary targets and any of those wells that indicate production potential from these zones may be suspended for future production of oil or gas. The wells are located to provide at least one modern data point in each geological compartment recognised from the 3D seismic data and the existing well data. Four of the wells will also test deeper exploration targets at the base of the Eocene section and fractured Deccan basalts that have proven to be oil reservoirs in the Tarapur block operated by GSPC immediately to the north and on trend with the Cambay Field. The database that already exists is comprehensive with over 60 wells drilled on the block and the reservoir distribution at OS II and to a lesser extent EP IV, has been mapped with a relatively high degree of confidence. New prospects at OS II and EP IV particularly in the northern part of the block and at stratigraphic horizons other than OS II and EP IV including Basal EP IV, are now being developed with the benefit of the newly acquired well data.

Cambay-19Z Oil Discovery Cambay-19Z, the second well in the appraisal program is an oil discovery in the Basal EP IV reservoir. The well spudded on 25 May and was released after completing the first of a series of planned tests on 09 July 2008. The well has proven the productive potential of deeper zones on the Western High Block. These zones were interpreted to be prospective exploration targets and by comparison with at least 3 older wells that were drilled in the period 1960-1990, there are probable oil zones that were missed in the initial evaluation. There is, therefore, a good possibility that the Basal EP IV oil bearing sandstone is present over most of the Western High Block. The volume of oil for the deeper Eocene (including Basal

CAMBAY FIELD RESOURCES ORIGINAL GROSS VOLUME-IN-PLACE

OS II & EP IV INTERVALS ONLY Low Estimate Best Estimate High Estimate

OIL (mmstb) 26 48 91

#GAS (billion cubic feet) 186 356 702

CONDENSATE (mmstb) 7 14 28

For

per

sona

l use

onl

y

EP IV) and fractured Deccan basement objectives was previously estimated at about 60 million barrels oil in place. Cambay-23Z and Cambay -19Z Well Bore Schematic Summary

The Western High Block is most prospective for oil and the Basin Area most prospective for gas. The areas are separated by a major fault that trends approximately north-south controlling the general hydrocarbon distribution. This is illustrated in the diagram of the well bore trajectory for Cambay-73 that is anticipated to intersect gas in the upper objectives and oil in the lower objectives.

Cambay-73 Well Bore Trajectory on 3D Seismic line showing main target zones The gas that has been produced in the past has come from the OS II in wells that are located mainly in the southern central part of the block. No gas has been produced from the EP IV in the past.

For

per

sona

l use

onl

y

Locations by colour code for initial 6 wells at 3 main stratigraphic horizons

Cambay-23Z appraisal well

Objectives: Primary: Eocene EP IV - gas Secondary: Oligocene OS II – gas Cambay-23 was drilled in 1963 and is reported to have tested gas from the EP IV zone at rates of 14,500 cubic metres per day through a 5mm choke. The appraisal well Cambay-23Z was designed to intersect the primary target about 200 metres from the same zone in the initial well in the area of a strong amplitude anomaly

Status: Spud date: 07 March 2008 Rig Release Date: 26 April 2008 Total Depth: 2,100 metres in Cambay Shale Formation Well Status: Suspended gas well with gas shows in OS II and EP IV.

Operations: Cambay-23Z was drilled as a deviated well in a northeasterly direction from the original well pad. Cores were cut in the EP IV with the aim of providing information that would be beneficial in designing a fracture stimulation of low permeability formation. A fracture stimulation will be designed and implemented when the last of the core data are received.

Results: Good gas shows were recorded while drilling the Miocene and Oligocene secondary objectives in this well. The evaluation of the wireline logs over the Basal Miocene and Oligocene OS II intersected at 1,505 metres and 1,545 metres respectively indicates the presence of about 9 metres of gas-bearing pay in these sandstones that are of good reservoir quality, each with about 25% average porosity. Cores were cut in the EP IV and wireline logs were run over the Eocene section. Indications from logs are that the EP IV is gas-bearing and a cased-hole DST will be conducted over the interval 1,961m – 2,005m when core results become available and a fracture stimulation program is formalised. Cambay-23Z well has been completed as a potential gas production well

Cambay-19Z appraisal well

Objectives: Primary: Oligocene OS II – gas Eocene EP III and EP IV - oil Secondary: Basal EP IV – oil Miocene Basal Sandstone – gas Deccan Fractured Basement – oil

For

per

sona

l use

onl

y

Status: Spud date: 14 May 2008 Rig Release Date: 09 July 2008 Total Depth: 2,350 metres in Deccan Trap basement Well Status: Suspended oil and gas discovery awaiting further testing of Basal EP IV oil zone and EP III and EP IV zones that were drilled with good gas shows. A cost effective workover rig has been contracted to undertake the further testing. The drilling rig has demobilized from C-19Z to Cambay-73 location.

Operations: DST #2 will be carried out over an interval of 16 metres of potential oil pay below the zone that was tested by DST #1. DST #3 will be conducted over an interval of about 23 metres at the EP III and EP IV where good gas shows were recorded while drilling and the zone is expected to flow oil by analogy with other wells on the Western High Block of Cambay Field. DST #4 will be conducted at the shallower level of the OS II reservoir unit depending on the results of the DST’s at the deeper levels. Strong gas shows were recorded at the OS II level while drilling. In the event that the well is retained as an oil producer, the OS II will not be tested in this well.

Results: DST #1 successfully flowed oil to surface at a rate of over 800 barrels of oil per day (BOPD) for the first hour of the test and later stabilised at a rate of 120 BOPD on 1” choke during the final phase of the 32 hour flow period. No formation water has been produced with the oil which is 410 - 430 API gravity. The Basal EP IV zone is present in at least three old wells on the Western High Block. These old wells were either not tested or were poorly evaluated and appear to have a similar log response to the zone that was successfully tested in Cambay-19Z. Preliminary indications from seismic and the analogous well logs are that the Basal EP IV may extend across the Western High Block.

For each of the 6 wells in the Cambay program, it is generally intended to demobilise the rig from each location as soon as drilling and logging operations are completed. Further tests on each well will be conducted with a wireline unit that has the capability to undertake the full range of activities that may be required to test the wells conclusively at a much lesser day rate..

Approval Received for Additional Well Locations The Ministry of Environment and Forests (MOEF), Government of India, gave its formal approval in May to the proposal by the Cambay Joint Venture to drill up to 60 additional development wells within the Cambay block in the event that re-development of the Cambay Field is warranted by the current 6 well appraisal drilling program. With the flexibility to construct new drilling sites, the opportunity now exists to test other prospects at different stratigraphic levels in other areas of the block that have high potential for gas and oil discoveries.

SABARMATI FIELD, GUJARAT (OILEX OPERATOR - 40%) No further work has been carried out in the past quarter. Intermittent production of oil continues from Sabarmati-1.

BHANDUT FIELD, GUJARAT (OILEX OPERATOR - 40%) No further work has been carried out in the past quarter. Oil continues to be produced intermittently from existing wells.

For

per

sona

l use

onl

y

INDONESIA WEST KAMPAR PSC, CENTRAL SUMATRA (OILEX - 45%) The resource estimate for Pendalian Field has been upgraded to 13.7 million barrels oil in place, with 1,800-2,000 bopd production anticipated in Q4 2008. A Plan of Development (POD) including an updated resource assessment for the Pendalian Oil Field (Oilex 45%) located in the West Kampar Production Sharing Contract (“PSC”) area in Indonesia (Fig. 1) is being submitted to the Indonesian Government for approval. The POD is based on a Best Estimate Contingent Resource of 13.7 million barrels oil in place (mmstboip) (Table 1). The represents an increase of 14% on the resource announced previously which was based on a single oil reservoir. The objective of the POD is to bring Pendalian Field into production in 2 phases comprising 2 wells in phase 1 and full field development of 3-4 wells in phase 2. The previous plan was to start production at a likely rate of about 1,200 barrels of oil per day (“bopd”) from a single well, Pendalian-3. The first phase has now been expanded to include a second well, Pendalian-4 with a corresponding increase in the likely production rate to 1,800 – 2,000 bopd anticipated in Q4 2008.

Contingent Resource Oil in Place (100% basis) – Pendalian Field As required in Indonesia, the technical studies are carried out by an independent third party appointed by the regulator (BPMigas) with input and review by personnel from the operator, PT Sumatera Persada Energi (SPE), and BPMigas. Oilex has also been participating in this process. The development plan is based on results from the Pendalian-1 well drilled in 1993 and the Pendalian-3 appraisal well which was drilled, tested and suspended as a future oil production well in November 2007. Pendalian-3, funded by Oilex as part of the farmin arrangement with SPE, flowed oil at potentially commercial rates from two shallow zones in the Sihapas Sandstone. The commingled flow potential with artificial lift was estimated to be up to 1,200 barrels per day. To date, significant conclusions arising from this independent evaluation are:

• Inversion studies of the seismic data indicate that the Sihapas sands are continuous reservoirs, supporting the volumetric assumptions for the Pendalian Field.

Contingent Resource – Development Pending Low Estimate mmstboip

Best Estimate mmstboip

High Estimate mmstboip

Sihapas Sandstone Units D-6, C-5 5.8 13.7 29.1

Sumatra

West Kampar PSC

WEST KAMPAR PSC

Pendalian Field

0 25km SCALE

Location Map West Kampar Production Sharing Contract Area

For

per

sona

l use

onl

y

• The Best Estimate Contingent Resource of oil-in-place determined by the independent third party for the two Sihapas zones is 13.7 mmstboip (gross), with a High Estimate volume of 29 mmstboip (gross). These volumes are similar to those determined by both SPE and Oilex.

• A staged approach to the development, with initial production from the Pendalian-3 well followed by Pendalian-4 production well, 3D seismic and full field development was recommended, subject to approval by the Indonesian Ministry of Petroleum.

Pendalian seismic inversion profile illustrating reservoir continuity An evaluation of further potential in the Pendalian Field in the form of undiscovered prospective resources at other potential reservoirs was also presented.

Undiscovered Prospective Resource Low Estimate mmstboip

Best Estimate mmstboip

High Estimate mmstboip

Units B-1,2,3; C-1,2,3; E-1 14 22 33

Undiscovered Prospective Resource (100% basis) – Pendalian Field

Top Sihapas reservoir depth map. Remaining POD requirements are being finalised by the third party adviser to BPMigas prior to submission to the Indonesian authorities. The recommended development schedule, subject to regulatory approval, calls for both Pendalian-3 and Pendalian-4 to be onstream in Q4 2008. Plans are in place for the early drilling of the Pendalian-4 well and tenders have been received for conducting both 2D and 3D seismic programs in the West Kampar block in 2008. Ongoing mapping has confirmed the exploration potential of the West Kampar PSC which will be delineated by additional seismic coverage and investigated with the drilling of 3 exploration wells in a campaign scheduled to commence later this year.

Proposed Pendalian-4

Pendalian-3

For

per

sona

l use

onl

y

OMAN BLOCK 56, SOUTH OMAN (OILEX OPERATOR – 25%) Drilling operations commenced in Oman at the end of 2007 and 3 wells were drilled in the first phase, 2 of which were oil discoveries. The rig was released for a period after the third well to enable results to be evaluated before the second phase of 4 wells, which is anticipated to commence in August 2008. The results of the Phase 1 drilling program in Block 56, Oman have been very encouraging with the Sarha-1 well likely to be a commercial discovery. Prospects selected for the 3 well program were based on the interpretation of existing seismic data and provided a balance of exploration targets ranging from moderate (Sarha-1, Ghadaq-1) to high risk (Alyanbou-1). The Sarha-1 discovery well confirmed that the productive trend in the adjacent block continues into Block 56. New seismic acquisition and reprocessing of existing data indicates that there is a number of structures similar to Sarha-1 present in the western flank area of Block 56 and the most prospective of these will be the locations for several of the wells in the Phase 2 drilling campaign. It is anticipated that further drilling will be carried out on the Sarha discovery to evaluate the potential of oil zones not able to be tested in Sarha-1 and to provide information required for development of the Al Khlata oil pool discovery. Preliminary estimates of the discovered petroleum initially in place based on the current data range from 20 to 70 million barrels (on a 100% basis). Given the characteristics of the oil recovered at Sarha-1 there will also be a focus on establishing the recoverable reserves volume and specialists in this type of development are studying the data from Sarha-1 to estimate the recoverable volumes and to provide input to a development plan. Heavy oil (preliminary oil gravity of 13.30 API) was recovered during testing of the Al Khlata zone in the Ghadaq-1 well and these results will also be the focus of review given that oil with these characteristics is routinely produced in Oman and in other heavy oil areas. The results from Alyanbou-1 which was a higher risk test of a large anticlinal structure in a remote area of the block will be incorporated into the overall prospectivity assessment.

Background The South Oman Salt Basin is a prolific oil producing province with extensive pipeline infrastructure linking the producing fields to the refining and export facilities in the north of the country. The oil produced from these fields is characteristically heavier with density in the range 150 - 280 API gravity. All of the 7 reservoir objectives drilled in the first 2 wells appear to be oil-bearing and preliminary studies on the feasibility of producing the heavy oil are now in progress.

Well Location Map Block 56

For

per

sona

l use

onl

y

Location of pipeline infrastructure and fields South Oman Salt Basin. Location and Infrastructure Map Several of the fields in this area hold over 1 billion barrels of oil in place. Most of these fields were discovered by PDO during the last 20 years. The most recent large field development to take place in the region is Oxy’s Mukhaizna Field which is reported to be over 2 billion barrels of oil in place and which will be produced by steam flood to improve the flow characteristics of the 150 API gravity oil. The Sarha and Ghadaq prospects, like many others in the western part of the block, are similar in structural form and reservoir objectives to the nearby producing fields operated by PDO. The pipeline network from those producing fields in the main part of the South Oman Salt Basin is only about 30 km to the west from Sarha-1.

Sarha-1 exploration well

Objectives: Primary: Huqf Formation, Al Khlata Formation Secondary: Al Gharif Formation, Haima Formation

Status: Spud date: 31 December 2007 Rig Release Date: 10 March 2008 Total Depth: 1,890 metres in Cambrian Huqf Formation Well Status: Suspended oil well.

Results: Good oil shows were recorded while drilling through each of the primary and secondary objectives. DST #1 confirmed the presence of moveable oil in at least one of the main objective horizons, the Al Khlata Formation, with strong indications of oil saturations that were not able to be tested adequately in the Huqf, Haima and the Gharif Formations.

Ghadaq – 1 exploration well

Objectives: Primary: Huqf Formation, Al Khlata Formation Secondary: Al Gharif Formation, Haima Formation

Status: Spud date: 17 March 2008 Rig Release Date: 15 April 2008 Total Depth: 1,442 metres in Cambrian Huqf Formation Well Status: Suspended oil discovery in the Al Khlata Formation.

Block 56 Oilex

Sarha-1 Ghadaq-1

Block 55

Block 54

Amin Field ~230 mmstbo

Al Burj Field ~160 mmstbo

Rima Field ~1,000 mmstbo

Mukhaizna Field

Marmul Field

Nimr Field 2,700 mmstbo

To Muscat (~600km)

50 km

oil pipeline

gas pipeline

Arabian

Block 6 PDO

Oil Pi li Gas Pipeline

Field name Reserve

For

per

sona

l use

onl

y

Results: Ghadaq-1 intersected oil zones at all primary and secondary objectives. Oil (130 API gravity) was recovered in a test from the Al Khlata Formation.

Alyanbou – 1 exploration well

Objectives: Primary: Huqf Formation, Al Khlata Formation Secondary: Al Gharif Formation, Haima Formation

Status: Spud date: 26 April 2008 Rig Release Date: 18 May 2008 Total Depth: 1,199 metres in Cambrian Huqf Formation Well Status: Plugged and abandoned with no shows.

Comment: The well was classed as a frontier exploration well. It was located in the northeastern sector of the block about 60 km from the nearest well control, to the east of the major structural lineament in the Tertiary Basin where no wells had previously been drilled.

Seismic Acquisition Preparations for tender of the 3D seismic acquisition program have been completed. Acquisition is expected to start in Q4.

JOINT PETROLEUM DEVELOPMENT AREA BETWEEN TIMOR LESTE AND AUSTRALIA JPDA 06-103, FLAMINGO BASIN OFFSHORE JOINT PETROLEUM DEVELOPMENT AREA (OILEX OPERATOR – 25%) The first phase of offshore operations has commenced in the Block JPDA 06–103, located in the Timor Sea JPDA between Timor-Leste and Australia. The Geowave Champion seismic vessel has completed its clearances and is acquiring the extensive, high resolution Maura 3D marine seismic program over an area of 2,082 km2. Data from this survey will be combined with existing 3D seismic surveys to provide 3D seismic coverage over more than 90% of the area of the Block. Processing of the data is expected to be concluded about the end of 2008 and the interpretation of the data over the entire block is anticipated to be completed by about end of March 2009. Locations for exploration wells will then be selected for drilling starting about mid-year 2009. To that end, on 13 June 2008 Oilex issued a conditional Notice of Award jointly with Nexus to Sedco Forex International for the supply of the Transocean Legend semi submersible drilling rig. The rig would drill development wells for Nexus before 2 wells for Oilex, estimated to start in about mid-year 2009. Oilex has accordingly made application, on behalf of the JPDA Block 06-103 Joint Venture, seeking an extension of time under the PSC to enable its 2 wells to be drilled by January 2010 rather than by January 2009. The application is under review by the relevant governmental authorities. New Discovery – In April of this year, a significant oil discovery at Kitan-1 and -2 was made by ENI, the operator of block JPDA 06-105 (adjacent to the west of JPDA 06-103). The Kitan-1 discovery well flowed oil at a rate of 6,100 BOPD from a drillstem test. The discovery was followed by an appraisal well at Kitan-2 that confirmed the commercial viability. These wells lie close to the JPDA 06-103 block boundary and confirm the oil potential of the basin. ENI subsequently made a Declaration of Commercial Discovery and the Timor Sea Designated Authority based in Dili, Timor-Leste declared Kitan a Development Area in May.

For

per

sona

l use

onl

y

Location Maura 3D Seismic Survey and ENI Kitan oil discovery Wells

AUSTRALIA WA-388-P CARNARVON BASIN, OFFSHORE WESTERN AUSTRALIA (OILEX OPERATOR – 20%) Oilex, on behalf of the JV, has finalised a contract to conduct a 3D seismic survey of 1,180 km2 over a part of the permit in 2008. Interpretation of the reprocessed 2D and existing third party seismic data continued. The seismic survey is planned to follow the acquisition in JPDA 06-103 using the vessel “Geowave Champion”.

Location Rose 3D Seismic Survey, WA-388P

For

per

sona

l use

onl

y

EPP 27 – OTWAY BASIN, OFFSHORE SOUTH AUSTRALIA (OILEX OPERATOR - 20%) Oilex, on behalf of the EPP 27 Joint Venture, is negotiating with the relevant authorities regarding the extension of the exploration permit term which ends in August 2008 and the future work program.

CORPORATE COMMUNITY DEVELOPMENT – TIMOR-LESTE RURAL HEALTH PROJECT Oilex’s business objective is to produce exceptional results for the Company and all stakeholders. A fundamental component of our strategy is to develop and maintain excellent working relationships with the communities where we work and to maintain a high level of corporate responsibility. Timor-Leste is one of the parties, with Australia, to the agreements governing the Joint Petroleum Development Area where Oilex has a significant work program. One of the fundamental long-term issues affecting the communities of Timor-Leste is poor health and Oilex has established a working alliance with Australian Aid International (“AAI”) for the provision of health care and training of health care workers that is needed in remote communities of Timor-Leste. This year the work is focussed on the island of Atauro to the north of Dili and providing health care facilities to remote villages.

This program has had a very beneficial impact on the health system and its intended beneficiaries on Atauro. It is fully coordinated with the objectives Timor Leste Ministry of Health and World Health Organization.

COMPANY STRUCTURE The Company presently has 132,083,885 shares on issue. These shares are traded on the ASX in Australia and on the AIM market of the London Stock Exchange under the code: OEX. Oilex also has 37,225,100 unlisted options on issue, the majority of these being held by executive staff and 1,181,000 Employee Performance Rights. At 30 June, 2008 the Company retained net cash and receivables of approximately A$37.5 million. Oilex regularly updates its website at www.oilex.com.au

For and on behalf of the Board Dr B. H. McCarthy Managing Director 31 July 2008 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 29 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 35 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, further information on which is available at www.spe.org. Oilex’s nominated advisor in relation to the AIM market is RFC Corporate Finance Ltd, contact: Stuart Laing, stuartl@rfc.com.au

For

per

sona

l use

onl

y

PERMIT SCHEDULE

PERMIT BASIN / STATE / COUNTRY

JOINT VENTURE PARTIES EQUITY %

OPERATOR

Oilex Ltd 30.00

Oilex NL Holdings (India) Limited 15.00

Cambay Field PSC

Cambay / Gujarat / India

Gujarat State Petroleum Corp. Ltd 55.00

Oilex Ltd

Oilex NL Holdings (India) Limited 40.00 Bhandut Field PSC

Cambay / Gujarat / India Gujarat State Petroleum Corp. Ltd 60.00

Oilex NL Holdings (India) Limited

Oilex NL Holdings (India) Limited 40.00 Sabarmati Field PSC

Cambay / Gujarat / India Gujarat State Petroleum Corp. Ltd 60.00

Oilex NL Holdings (India) Limited

Oilex Oman Limited 25.00

GAIL (India) Limited 25.00

Videocon Industries Ltd 25.00

Bharat Petroleum Corporation Ltd 12.50

Block 56 EPSA

South Oman / Oman

Hindustan Petroleum Corp Ltd 12.50

Oilex Oman Limited

Oilex (West Kampar) Limited 45.00 West Kampar PSC

Central Sumatra / Sumatra/ Indonesia PT Sumatera Persada Energi 55.00

PT Sumatera Persada Energi

Oilex Ltd 20.00

Videocon Industries Ltd 20.00

Gujarat State Petroleum Corp. Ltd 20.00

EPP27

Otway / SA / Australia

Great Artesian Oil & Gas Limited 40.00

Oilex Ltd

Oilex (JPDA 06-103) Ltd 25.00

GSPC (JPDA) Limited 25.00

Global Energy Inc. 25.00

JPDA 06-103 PSC

Flamingo / Joint Petroleum Development Area/ Timor-Leste & Australia Bharat Petroresources JPDA Ltd 25.00

Oilex (JPDA 06-103) Ltd

Oilex Ltd 20.00

Gujarat State Petroleum Corp Ltd 20.00

Videocon Industries Ltd 20.00

Bharat Petroleum Corporation Ltd 20.00

WA-388-P

Carnarvon / WA / Australia

Hindustan Petroleum Corp Ltd 20.00

Oilex Ltd

For

per

sona

l use

onl

y

Appendix 5B Mining exploration entity quarterly report

Listing Rule 5.3

APPENDIX 5B

MINING EXPLORATION ENTITY QUARTERLY REPORT Introduced 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98, 30/9/2001.

Name of entity

OILEX LTD ABN Quarter ended (“current quarter”)

50 078 652 632 30 JUNE 2008

Consolidated statement of cash flows Cash flows related to operating activities

Current quarter $A’000

Year to date (12 months)

$A’000

1.1 Receipts from product sales and related debtors - -1.2 Payments for (a) exploration and evaluation

(b) development (c) production (d) administration (net)

(3,868)-

(24)(969)

(19,866)-

(656)(3,508)

1.3 Dividends received - -1.4 Interest and other items of a similar nature received 705 3,1471.5 Interest and other costs of finance paid (12) (695)1.6 Income taxes paid - -1.7 Other (provide details if material) - - Net Operating Cash Flows (4,168) (21,578) Cash flows related to investing activities 1.8 Payment for purchases of: (a) prospects

(b) equity investments (c) other fixed assets

--

(371)

--

(879)1.9 Proceeds from sale of: (a) prospects

(b) equity investments (c) other fixed assets

---

113--

1.10 Loans to other entities (92) (1,859)1.11 Loans repaid by other entities - -1.12 Other (provide details if material) - - Net investing cash flows (463) (2,625)1.13 Total operating and investing cash flows (carried

forward) (4,631) (24,203)

For

per

sona

l use

onl

y

Appendix 5B Mining exploration entity quarterly report

1.13 Total operating and investing cash flows

(brought forward) (4,631) (24,203)

Cash flows related to financing activities

1.14 Proceeds from issues of shares, options, etc - 6781.15 Proceeds from sale of forfeited shares - -1.16 Proceeds from borrowings (net) - -1.17 Repayment of borrowings (5,000) (10,000)1.18 Dividends paid - -1.19 Other (provide details if material) - - Net financing cash flows (5,000) (9,322)

Net increase (decrease) in cash held

(9,631) (33,525)

1.20 Cash at beginning of quarter/year to date 43,099 66,9931.21 Exchange rate adjustments to item 1.20 - -

1.22 Cash at end of quarter 33,468 33,468

Payments to directors of the entity and associates of the directors Payments to related entities of the entity and associates of the related entities

Current quarter $A'000

1.23

Aggregate amount of payments to the parties included in item 1.2

336

1.24

Aggregate amount of loans to the parties included in item 1.10

-

1.25

Explanation necessary for an understanding of the transactions

-

Non-cash financing and investing activities 2.1 Details of financing and investing transactions which have had a material effect on

consolidated assets and liabilities but did not involve cash flows N/A

2.2 Details of outlays made by other entities to establish or increase their share in projects in which the reporting entity has an interest

N/A

For

per

sona

l use

onl

y

Appendix 5B Mining exploration entity quarterly report

Financing facilities available Add notes as necessary for an understanding of the position.

Amount available $A’000

Amount used $A’000

3.1 Loan facilities - -

3.2 Credit standby arrangements - -

Estimated cash outflows for next quarter $A’000 4.1 Exploration and evaluation 17,000

4.2 Development -

Total 17,000

Reconciliation of cash Reconciliation of cash at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts is as follows.

Current quarter $A’000

Previous quarter $A’000

5.1 Cash on hand and at bank 4,117 3,125

5.2 Deposits at call 29,351 39,974

5.3 Bank overdraft - -

5.4 Other (provide details) - -

Total: cash at end of quarter (item 1.22) 33,468 43,099

Changes in interests in mining tenements Tenement

reference Nature of interest (note (2))

Interest at beginning of quarter

Interest at end of quarter

6.1 Interests in mining tenements relinquished, reduced or lapsed

-

Refer to Permit Schedule

in Quarterly Report

-

-

6.2 Interests in mining tenements acquired or increased

Refer to Permit Schedule in Quarterly Report

For

per

sona

l use

onl

y

Appendix 5B Mining exploration entity quarterly report

Issued and quoted securities at end of current quarter Description includes rate of interest and any redemption or conversion rights together with prices and dates.

Total number Number quoted

Issue price per security

Amount paid up per security

7.1 Preference +securities (description)

- - - -

7.2 Changes during quarter (a) Increases through issues (b) Decreases through returns of capital, buy-backs, redemptions

- - - -

7.3 +Ordinary securities 132,083,885 132,083,885 Various -

7.4 Changes during quarter (a) Increases through issues (options exercised) (b) Decreases through returns of capital, buy-backs

-

-

-

-

-

-

-

-

7.5 +Convertible debt securities (description)

- - - -

7.6 Changes during quarter (a) Increases through issues (b) Decreases through securities matured, converted

- - - -

Exercise price Expiry date 7.7

Options (description and conversion factor)

500,0003,000,0001,000,1002,000,0003,000,0004,250,0001,000,0004,500,000

775,000775,000775,000500,000500,000500,000500,000450,000450,000

2,500,000300,000300,000300,000500,000350,000350,000350,000

3,900,0003,900,000

---------------------------

$1.00 $1.50 $0.50 $0.40 $0.50 $0.80 $0.50 $0.50 $0.50 $0.65 $0.90 $1.50 $1.75 $2.00 $1.40 $2.00 $2.50 $2.00 $1.75 $2.25 $2.75 $1.57 $1.60 $2.10 $2.70 $2.00 $2.50

31/12/200931/12/200907/12/200814/12/200814/12/200814/12/200916/02/200931/03/201031/07/200931/07/200931/07/201031/10/200931/10/200931/10/201031/01/201031/01/201031/01/201131/03/201131/03/201031/03/201131/03/201230/09/201130/04/201030/04/201030/04/201101/07/201101/07/2011

For

per

sona

l use

onl

y

Appendix 5B Mining exploration entity quarterly report

Issued and quoted securities at end of current quarter (cont’d) Description includes rate of interest and any redemption or conversion rights together with prices and dates. Total number Number

quoted Issue price per

security Amount paid

up per security 2006 Performance Rights 279,000

254,000249,000

Tranche 1 expire 1/07/2011 Tranche 2 expire 1/07/2011 Tranche 3 expire 1/07/2011

2007 Performance Rights 143,000

128,000128,000

Tranche 1 expire 1/07/2012 Tranche 2 expire 1/07/2012 Tranche 3 expire 1/07/2012

7.8 Issued during quarter - -

Exercise price -

Expiry date -

7.9 Exercised during quarter

- - - -

7.10 Expired during quarter

- - - -

7.11 Debentures (totals only)

Nil Nil

7.12 Unsecured notes (totals only) Nil Nil

COMPLIANCE STATEMENT 1 This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Act or other standards acceptable to ASX. 2 This statement does give a true and fair view of the matters disclosed.

Sign here: Date: 31 July 2008 (Director/Company Secretary)

Print name: Max D.J. Cozijn

== == == == == F

or p

erso

nal u

se o

nly