21st Jul 2014 09:41
LONDON (Alliance News) - Oilex Ltd Monday said that following successful mill-out operations, the Cambay-77H well has started controlled flow back of fracking fluids with oil and condensate being recovered to surface.
The oil and gas exploration and development company said the hydrocarbon flow is now being separated for sale along with associated reservoir gas, with gas associated with the well flow-back currently being flared to ensure safety of all well-site personnel.
The company said that following carefully monitored well flow-back operations, the well continues to show the characteristics of a high performance multi-stage fracked horizontal well.
It said the recovery of roughly API 50 light crude during the flow-back operations indicated higher-than-expected liquid hydrocarbon production from the gas-rich site.
Oilex said the well is now being cleaned up and it will advise the market of a stabilised flow rate via a production test once the clean up has been completed.
"Flowback started very strongly and remains on track to take 2 to 3 weeks," Managing Director Ron Miller said in a statement. "The recovery of light oil/condensate with the gas under clean-up flow this early in the flow-back phase is considered positive and the hydrocarbon liquid volume exceeded our expectations."
Oilex shares were up 13.4% to 7.50 pence, putting it amongst the top ten AIM All-Share risers on Monday.
By Tom McIvor; [email protected]; @TomMcIvor1
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