17th Sep 2014 08:45
LONDON (Alliance News) - Oilex Ltd Wednesday said it has completed chemical intervention work at the Cambay 77-H well, with a significant increase in flowback rates for gas, oil and water at the site.
Oilex said approximately 75% of the original frac water has been recovered, with no formation water recovered to date.
The company said it would continue with its plan to reduce the operating cost structure for the well. It has removed the frac tree and replaced it with a standard production tree in anticipation of moving towards a formal production test. In addition, it has demobilised a range of equipment and associated personnel owing to the current understanding about the performance of the well.
"We remain very positive about Cambay-77H and look forward to getting through the water recovery and into the production testing phase of our proof of concept well," said Oilex Managing Director Ron Miller.
"Having similar gas composition as Cambay-73 provides a great opportunity to increase near term production into a market where gas is in very short supply. Selling gas during clean-up and testing will be a welcome revenue stream in addition to the sale of crude oil produced from Cambay-77H," Miller added.
Oilex shares rose 5.8% on the back of the news to 4.455 pence.
By Sam Unsted; [email protected]; @SamUAtAlliance
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