4th Aug 2014 08:38
LONDON (Alliance News) - Oilex Ltd Monday said oil is continuing to be recovered at the Cambay-77H site in India, but the flow-back period following fracking at the site has been extended after shut-ins for operational improvements and tests.
In late July, the company said the well had started controlled flow back of fracking fluids with oil and condensate being recovered to surface at the time.
At the time, it said hydrocarbon flow is now being separated for sale along with associated reservoir gas, with gas associated with the well flow-back being flared to ensure safety of all well-site personnel.
The oil and gas exploration and development company said on Monday that the well continues to produce oil and frack water, with around 55% of the water used to stimulate the well having been recovered so far.
It said light crude oil production continues to be recovered and most has been transported to a nearby refinery for sale.
The company said samples of the oil, gas and water have been collected for laboratory analysis, which will be used to determine the fluid properties being recovered.
However, Oilex said that it has had to shut in the well for certain periods during the slow-back operations in order to change its frack tree due to leak issues, to complete runs to the bottom of the unit with its coiled tubing unit, and to complete preliminary build-up surveys of wellhead pressure.
"Flow-back started very strongly and continues at a steady pace, although the shut-in periods for changing the frack tree and checking the well bore have extended the duration," Managing Director Ron Miller said in a statement.
The company said it will advise the market of a stabilized flow rate via a production test once frack fluid return and clean-up operations have been completed.
Oilex shares were down 6.6% to 10.16 pence, putting them amongst the top-10 AIM All-Share fallers during morning trading on Monday.
By Tom McIvor; [email protected]; @TomMcIvor1
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