31st Oct 2014 10:44
LONDON (Alliance News) - Oilex Ltd Friday reported an increase in production from its wells in India during the last quarter, as the company continues to try and bring its Cambay-77H well into production and secure sales agreements with the Indian government.
During the quarter ended September 30, Oilex reported a total net oil production of 1,711 barrels, nearly trebling compared to the previous quarter. From the total net production, 1,490 barrels came from its Cambay field in India, with the remaining 221 barrels coming from the Sabarmati field, also in India.
Production increased from the 665 net oil production during the quarter ended June 30.
At the Cambay field, the company calculated the hydrocarbon liquid to gas ratio during the last quarter, which totalled 100 barrels of hydrocarbon liquid for every million square cubic feet of gas, was over double what the company anticipated in the well design, it said in a statement.
It has also begun negotiations to sell gas from the Cambay-77H well into the local gas market with the Indian government and its joint venture partner. It has already sealed one gas sales agreement with the government for the Cambay-73 well, again for the local market.
The Cambay-77-H well has an estimated sustained production rate of 0.5 million to 1.0 million standard cubic feet of gas per day, nearly double of the Cambay-73 well, said Oilex.
At the end of the quarter the company had a cash position of AUD5.1 million.
"The company continued to review and evaluate suitable projects that are consistent with its Indian Ocean Rim strategy and onshore focus. A number of opportunities have been identified and will be pursued at the appropriate time relative to the company's priority focus on Cambay-77H well," it said in a statement.
"Oilex will continue to focus on commercialising the Cambay Field and generating sustainable cash flow and profits for shareholders," he added.
Oilex shares were trading flat at 3.25 pence per share Friday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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