8th Apr 2014 10:10
LONDON (Alliance News) - Oilex Ltd Tuesday said it has moved closer to production at its Cambay-77H well in India after successfully completing setting and cementing its next casing at roughly 1,653 measured depth.
The oil and gas development and production company said the casing was set in a suitable formation to ensure well integrity whilst the company drills through a highly pressured target reservoir section. It completed a final stress test of its rig systems at the well prior to setting the casing and found that the condition of the wellbore was very good.
Oilex said the rig is now planning to drill into the target reservoir and elevated gas readings are expected through until its total depth, which is planned to be roughly 2,357 metres.
The site is located next to the previous Cambay-76H horizontal well which flowed gas and condensate but was suspended due to downhole mechanical problems.
The company is hoping to rectify these problems with the new well and record hydrocarbon flow from the site following fracking, which would take place after its final production casing is set in.
In March, the company reported mechanical problems with the rig drilling Cambay-77H but last week said that the rig was repaired and was operational.
Oilex shares were up 15.5% to 4.65 pence, putting it in the top ten AIM All-Share risers Tuesday.
By Tom McIvor; [email protected]; @TomMcIvor1
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