8th Jun 2015 07:27
LONDON (Alliance News) - Oilex Ltd Monday said the Cambay 73 production facilities in India are ready to be commissioned and will be tied-in to the newly laid pipeline at the project.
The company is slightly behind schedule - it originally aimed to connect the production facilities to the pipeline in May, but said Monday that the pipeline has been laid and the facilities have finished pre-commissioning and are now ready for commissioning and start-up.
The Cambay-73 well will supply gas to the low pressure gas market in the vicinity of the Cambay field and is expected to produce approximately 50-60 barrels of oil equivalent per day of gas and condensate. The condensate will be separated at the field and trucked to a nearby refinery together with other Cambay crude oil produced.
Oilex said the start of gas sales into the Indian domestic market "reinforces Oilex's strategic advantage as an early mover in India".
"The commencement of gas production from the Cambay-73 facilities is a significant milestone for Oilex and marks the first step on the path to achieving positive cash flow from operations in India. Oilex continues to deliver on its plan of production, near-term cashflow and reserves growth to create a sustainable business in the midst of a robust and supportive domestic market for petroleum energy," said Managing Director Ron Miller.
Oilex shares were up 3.7% at 3.50 pence early Monday.
By Joshua Warner; [email protected]; @JoshAlliance
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