9th Jun 2014 10:51
LONDON (Alliance News) - Oilex Ltd Monday said delayed equipment has arrived on site for the fracture stimulation of its Cambay-77H well in Cambay Basin, Gujarat, India.
The oil and gas exploration and development company said equipment from Schlumberger Ltd for the programme has started to arrive on site from its previous contract, following an inspection and maintenance period, but that the fracture stimulation mobilisation is taking slightly longer than forecast due to the duration of Schlumberger?s prior commitment, which was out of Oilex?s control.
The company said it also has acquired a cement bond log to test the condition of cement in its production casing, has tested its coiled tubing for the site, and has filled its frac water storage pit with roughly 21,000 barrels of water ahead of the fracking programme.
Cambay-77H is located adjacent to the Cambay-76H horizontal well that underwent a successful multiple-staged fracture stimulation programme along its 633m lateral section in 2012 but was suspended prior to testing due to downhole mechanical problems. Oilex said the Cambay-77H well design incorporates all of the key operational and technical learnings that have arisen from a forensic engineering analysis of Cambay-76H by multiple expert parties.
The company said it now plans to inform the market when it starts and completes the Stage 1 fracking.
"The close working relationship between Schlumberger and Oilex has enabled activities to now progress as planned. This should culminate with the production testing of Cambay-77H commencing in August 2014, after a flowback and well clean-up period. We look forward to the next few weeks of fracture stimulation and well testing activities,? Managing Director Ron Miller said in a statement.
Oilex shares were up 1.0% to 7.24 pence on Monday.
By Tom McIvor; [email protected]; @TomMcIvor1
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