Oil Basins Limited (ASX:OBL) Update On Canning Basin Operations

Melbourne, June 20, 2011 AEST (ABN Newswire) - Oil Basins Limited (ASX:OBL) are pleased to make the following ASX announcement relating to the Backreef Area Canning Basin, onshore Western Australia (WA) in response to a number of shareholder requests and so as to keep the market fully informed.

During 1HY2011, OBL as operator Backreef Area (100% net beneficial rights), has commissioned new geophysical and geological (G&G) work to assist with its evaluation and interpretation of the potential new oil play area (discovered by the drilling of its first well Backreef-1 in October/November 2010). The Backreef-1 well is presently cased and suspended at PBTD 1155m pending this new G&G assessment.

OBL are now pleased to formally advise that its specialist geophysical consultant Dayboro Geophysics Pty Ltd has completed the following tasks:

- The digitisation of the vintage 2D seismic lines (covering some circa 190km of vintage data) was effectively successfully completed in early May.

- The PSTM reprocessing was successfully completed in late May; and

- The PSDM reprocessing and interpretation was effectively completed early last week.

OBL has engaged Melbourne based geophysical interpreters 3D Geo Pty Ltd to provide overall quality control and to install these reprocessed lines onto advanced Schlumberger Petrel software to enable OBL to conduct further inhouse G&G studies.

OBL is pleased with the G&G worked performed to date on the potential New Shallow Oil Play within the Backreef Area. Early indications from the un-integrated PSTM are encouraging with a number of potentially oil prospective 'features of interest' identified within the Kimberley Downs Embayment within the Backreef Area. Work will now immediately progress on the detailed prospect mapping assessment and geological interpretation during July 2011. In addition OBL, has engaged experts to perform petrophysical correlation studies with the nearby Blina Oil Field productive formations and a peer review and prospect reservoir assessment in accordance with PRMS Guidelines will also be conducted. Due to current consultant workloads, these additional new studies are unlikely to be complete by the end of July, but every effort will be made to complete these new assessments as soon as practicable, to enable operational decisions to be made during 2011.

For the complete Oil Basins Limited announcement including figures, please refer to the following link:
http://www.abnnewswire.net/media/en/docs/67996-ASX-OBL-356621.pdf

Contact

Neil Doyle, SPE Director Oil Basins Limited Tel: +61-3-9692-7222 Email: admin@oilbasins.com.au http://www.oilbasins.com.au