31st Jan 2014 10:39
LONDON (Alliance News) - Oilex Ltd Friday said it is moving towards the start of drilling on the Cambay-77H well in India, planned before the end of this quarter.
The exploration-and-development oil company said the drill rig to work the site is currently being assembled at site and drilling services contracts were being finalised.
Oilex plans to drill the Cambay-77H site between February 22 and March 9.
The company said that the well will reach a total depth of 1,700 metres, including a horizontal section which will be fracture stimulated, or fracked, over five to seven days.
Oilex said that with flow testing taking around six to eight weeks, results are expected in May or June.
The company said that during the last three months of 2013 the Cambay Field produced 798 barrels of oil, with 359 barrels net to Oilex, an increase on its 704 barrels of oil with 317 net to Oilex in the same period 2012.
Oilex also said that it is in discussions with Magna Energy Ltd, which acquired 10% and exercised its option for an additional 5% in the Cambay production sharing contract during the last quarter of 2013, over payment of USD2 million in acquisition costs.
Oilex holds a 45% interest and is the operator of the Cambay PSC, but once Magna's acquisition is complete, Oilex's participating interest will be 30%.
The company said that, at the end of the quarter, it had cash resources of AUD7.2 million.
Oilex shares were down 7.0% to 5.00 pence, putting it in the top AIM losers Friday.
By Tom McIvor; [email protected]; @TomMcIvor1
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