28th Apr 2015 07:20
LONDON (Alliance News) - Oilex Ltd shares hit a six-month high early Tuesday after it said it had completed the oil and gas production facilities at the Cambay-73 site on the Cambay field in India, and is expecting initial production of about 50 to 60 barrels of oil equivalent a day of gas and condensate.
It said it had finished the production facilities on budget and ahead of schedule, and the construction of the pipeline that will connect the facilities has now started. That will allow commissioning to take place.
The condensate from the new site on Cambay will be separated at the field and then trucked to a nearby refinery with the crude oil that will also be produced from the field.
"Gas production will lead to increased cashflow from the Cambay Field and is significant step in our 2015 programme," Managing Director Ron MIller said.
Oilex said it has also started an assessment of nearby legacy wells which may be capable of being tied into the Cambay-73 facilities should it have surplus capacity.
"In conjunction with this, the Cambay Joint Venture will evaluate expanding supply to the local low pressure gas market as a method to increase production and cash flow with minimal investment," it added.
Oilex shares were up 4.8% at 3.80 pence early Tuesday, having hit a high of 4.25p in initial dealings.
By Steve McGrath; [email protected]; @stevemcgrath1
Copyright 2015 Alliance News Limited. All Rights Reserved.
Related Shares:
OEX.L