Oil Basins Limited (ASX:OBL) Rig Contract Executed, Backreef-1 Well Drilling Preparations Underway

Melbourne, Sep 22, 2010 AEST (ABN Newswire) - Oil Basins Limited (ASX:OBL) wishes to make the following ASX Announcement, so as to keep the market fully informed.

Further to the comprehensive ASX Announcement dated 6 September, 2010, the Company, as Designated Operator, Backreef Area is pleased to advise that it has now executed the drilling contract with Hunt Energy & Minerals Co. Pty Ltd for their Rig 3. Preparations are advancing with contractors to mobilise the rig to the Backreef-1 well site from its present laid down location within the Amadeus Basin, Central Australia.

All necessary materials and services contracts are now in advanced stages of finalisation and execution.

It is anticipated that final preparations and mobilisation will take circa 1 to 2 weeks and the Backreef-1 well is anticipated to spud on or around the 6 October 2010. The present planned time to a minimum total depth of 1600m is estimated at 10 days from spud date.

More specific details will be announced closer to the date of spudding of the well and as preparations are finalised.

Contact

Neil Doyle Director Oil Basins Limited Tel: +61-414-912-901 Email: n.doyle@oilbasins.com.au http://www.oilbasins.com.au