Oil Basins Limited (ASX:OBL) Backreef-1 Drilling Report No.2 At Canning Basin Operations

Melbourne, Oct 12, 2010 AEST (ABN Newswire) - Oil Basins Limited (ASX:OBL) are pleased to make the following ASX announcement relating to the commencement of drilling operations at Backreef-1, Backreef Area Canning Basin, onshore Western Australia (WA):

1. Early on 11 October 2010, the Hunt Energy and Mineral Co. Rig 3 (Hunt Energy Rig 3) rig-up was complete and all systems were tested and commissioned.

2. Following the Pre-spud Meeting, the Backreef-1 well was spudded at 2:30pm WST 11 October 2010.

3. As at 6:00am WST 12 October Backreef-1 was at a depth of 204m RT and drilling ahead in the Noonkanbah Formation with a 311mm (12-1/4 inch) diameter hole to 650m RT. No coals were observed in the Liveringa Formation.

4. The updated Backreef-1 time versus depth curve is attached (see link at the bottom).

In accordance with ASX Listing Rules, during the conduct of Backreef-1 drilling operations, OBL will advise the market weekly (on Thursdays), or after concluding an important well drilling operation and/or obtaining an important assessment or result.

By funding 100% of the drilling and completion costs of Backreef-1, OBL is earning upto 90% of Backreef-1 and the Backreef Area.

For the complete Oil Basins announcement including figures, please refer to the following link:

http://www.abnnewswire.net/media/en/docs/63927-ASX-OBL-343499.pdf

Contact

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