8th Oct 2014 07:18
LONDON (Alliance News) - Oilex Ltd shares dropped early Wednesday after the company said it had faced some issues at its Cambay 77-H well in India when replacing the frac tree with a standard production tree, resulting in a 13-day recovery operation.
Shares in the company were down 14.3% to 5.25 pence in early trade, making it one of the worst performers on the AIM All-Share index.
Oilex said that during the flowback operations for the well, the frac tree was replaced with a standard production tree. As part of this process, two retrievable bridge plugs were set as safety barriers against the well flowing. The first plug on the site did not set and seal property and moved downhole and became stuck, it said. It said the recovery operations for the plug were completed in 13 days.
Following the downtime, the company said the recovery of frac water, oil and gas started again and said the well has shown a significantly improved performance.
The group also said it is operating Cambay-77H with reduced choke settings in order to minimise the re-introduction of potential blockages.
Oilex said the average oil and water recovery rate at the site is 229 barrels per day, with an average gas rate of 0.41 million standard cubic feet per day.
It said it is making efforts to optimise the operational parameters at the site and to improve the water recovery.
"Setting aside the operational delays to recover the retrievable bridge plug and clean the well bore, Oilex is pleased with the well's performance at a relatively small choke," said Ron Miller, Managing Director of Oilex.
"Flowback is all about removing the water put into the reservoir during frac and coil tubing operations, as this impairs the hydrocarbon production rates. We look forward to the improved water recovery leading to better oil and gas production," Miller added.
By Sam Unsted; [email protected]; @SamUAtAlliance
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