10th Nov 2015 09:18
LONDON (Alliance News) - Oilex Ltd Tuesday said it has successfully completed the workover on the Cambay-19z well in India as it continues to conduct and prepare workovers on other wells.
The workover of Cambay-19z was completed on budget, and the well is currently pumping out 40 barrels of brine per day. The company said there are around 240 barrels of brine to be pumped out, after which the well should begin to produce oil. That suggests oil should be flowing within the next six days.
Brine is the fluid that is injected into wells to get oil and gas moving to the surface, and is mostly made up of salt water.
However, Oilex also said it will adjust the pumping rate from the well once the brine is removed, meaning the well will not necessarily pump out 40 barrels a day once it starts to flow.
Once the workover on Cambay-19z was completed, the rig moved to start a workover on Cambay-20. That workover on the older legacy well started last Thursday and is focused on recovering, inspecting, cleaning and replacing, as necessary, the production tubing inside the well.
Oilex also will install a downhole pump in the well which will improve oil production, it said.
"The Cambay workover campaign continues with the successful completion of activities at Cambay-19z. The pumping performance to date indicates good well deliverability," said Oilex Managing Director Ron Miller.
Once that workover on Cambay-20 is completed, Oilex will begin a workover on Cambay-77H. The company said it has started preparations to replace the frac tree in the well with a production tree, and said it will also install production tubing.
A frac tree is used to prevent equipment failures on high-pressure, high-temperature wells whilst drilling operations are ongoing, which is then replaced with a production tree allowing an increase in production once completed. Production tubing is cemented inside the well, allowing oil and gas to flow through it.
Oilex said it has identified three other wells on which it may potentially complete workovers. Those three wells are Cambay-70, Cambay-60 and Cambay-15.
"We remain vigilant on costs while focusing on increasing cashflow from production. We are excited to build up momentum through the workover campaign and capture the commercial benefit of lower contractor service prices currently prevalent in the market," said Miller.
Oilex shares were up 1.8% to 1.40 pence per share on Tuesday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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