Oil Basins Limited (ASX:OBL) Backreef-1 Drilling Report No.3 At Canning Basin Operations

Melbourne, Oct 15, 2010 AEST (ABN Newswire) - Oil Basins Limited (ASX:OBL) wish to make the following ASX announcement relating to the drilling operations at Backreef-1, Backreef Area Canning Basin, onshore Western Australia (WA):

1. As at 6:00am WST 14 October Backreef-1 was at a depth of 741m RT preparing to run 245mm (9-5/8 inch) diameter casing. The 311mm (12-1/4 inch) diameter hole was deepened, with the permission of the WA Department of Mines and Petroleum, after the hole failed to encounter an adequate thick casing shoe point within the Grant formation. The revised deepened casing point is located within hard siltstones.

2. Shortly after spudding, a number of significant rain events have occurred in the region of the Backreef-1 Rig Site and access road, which may cause a short delay in the running of the 245mm (9-5/8 inch) diameter casing due to poor road conditions impeding the safe movement of both materials and equipment. Should these conditions persist and lead to an extended stoppage of normal rig operations, drilling activity will be delayed to allow road repair to be undertaken to facilitate the delivery of drilling supplies.

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 up to 90% of Backreef-1 and the Backreef Area.

Contact

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