9th Mar 2015 10:33
LONDON (Alliance News) - Oilex Ltd Monday said its planned 2015-16 work programme for the Cambay field has been approved by both the joint venture and the government of India, and it is hoping to achieve lower drilling and other costs because of the recent decrease in global oil and gas industry activity.
In a statement, the oil and gas explorer and producer said the work programme consists of a firm two well drilling campaign as well as two contingent wells. It will buy all the long lead items concurrently so it can make a fast decision to commit to the contingent wells. The first well is expected to be started late in the second half of 2015, subject to the finalisation of funding.
Oilex also said that about half the production facilities at the Cambay-73 well have been built.
The company has a 45% participating interest in the project and is the operator. It said the partners in the venture plan to start a five well work-over campaign to boost oil and possibly gas production before starting a horizontal well drilling campaign.
"This work-over campaign is integral to achieving the company's target of cash flow positive operations in India during 2015, excluding CAPEX. By finishing the work-over program before the drilling campaign, deployment of manpower and equipment can be optimised," it said.
Oilex is also operator of the Bhandut field in India, where it has a 40% equity stake. It said design engineering work has started on the gas production facilities for Bhandut-3 and talks are in progress regarding the gas transportation arrangements that the buyer will be providing. The design work is about 40% complete, and once it is finalised then the procurement of equipment will start. Delivery of critical equipment will govern the start of production at the well.
Oilex shares were up 2.5% at 2.05 pence Monday morning in London.
By Steve McGrath; [email protected]; @stevemcgrath1
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