14th Apr 2014 11:50
LONDON (Alliance News) - Oilex Ltd Monday said its Cambay-77H well reached total depth and has intersected strong gas readings in its primary reservoir, ahead of testing in preparation for its fracture stimulation programme.
The oil and gas development and production company said the well drilled to 2,370 metres in depth and intersected its primary reservoir target with increased gas readings which are similar to its Cambay-76H well, indicating that the reservoir is hydrocarbon bearing.
The company said that a full set of logs will be acquired for the site after conditioning the wellbore, after which a new production casing will be put in place in preparation for a fracture stimulation programme at the site.
Oilex said it has also completed a set of modifications and production changes in order to hopefully overcome mechanical issues the company faced in its Cambay-76H well.
The site is located 300 metres from its previous Cambay-76H horizontal well, which flowed gas and condensate but was suspended due to downhole mechanical problems after successful multiple staged fracture stimulation.
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 11.1% to 5.50 pence, putting it in the top ten AIM risers Monday.
By Tom McIvor; [email protected]; @TomMcIvor1
Copyright © 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
OEX.L