Oil Basins Limited (ASX:OBL) Backreef-1 Drilling Report No.5 At Canning Basin Operations

Melbourne, Oct 21, 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. The installation and testing the well blow-out preventors (BOP's) was completed at 6:00pm WST 20 October.

2. As at 6:00am WST 21 October, operations were drilling with a 216mm (8-1/2 inch) diameter bit at 744m to prepare for the a formation integrity test (FIT).

3. As at 7:30am WST drilling operations have recommenced (refer to Figure 1 - Time versus Depth curve).

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.

Contact

Kim McGrath Chairman Oil Basins Limited Tel: +61-3-9692-7222 Email: admin@oilbasins.com.au http://www.oilbasins.com.au