30th Jan 2015 09:26
LONDON (Alliance News) - Oilex Ltd Friday said production from the company's flagship Cambay field in India fell in the last quarter, but it said production should increase after the company brings a new production well online in the near future.
The company produced 849 barrels of oil during the three months ended December 31, which all came from the Cambay field in India. This represents a 43% decrease quarter on quarter, which was due to the shut in of the Cambay 77-H well after Oilex finished production testing.
Oilex said it is focusing on bringing the Cambay 77-H well into production "as soon as possible".
The company said the Cambay field is expected to have "robust economics" despite the low oil price, and Oilex said the government of India has granted an extension to the Petroleum Mining Lease for the Cambay field recently and endorsed the sale of gas as well.
At the Sabarmati field, the company is expecting to plug and abandon the Sabarmati-1 well in the first quarter after the government approved Oilex's request to relinquish the field, it said. Oilex plans to transfer equipment from Sabarmati for possible future use at the Cambay field.
Farm-out talks are ongoing for the Canning basin in western Australia. Oilex said it has supplied prospective partners with new data from the field and a commitment programme to which it would expect them to adhere.
Oilex shares were up 1.8% to 2.29 pence per share on Friday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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