8th Apr 2016 07:25
LONDON (Alliance News) - Oilex Ltd shares soared on Friday after it said it has started producing gas from the Bhandut field in India, which it will be able to sell whilst it waits to secure approval from authorities for its field development plan.
Oilex shares more than doubled on Friday morning to 1.41 pence per share.
Oilex said the Bhandut-3 well has produced a flow rate of 700,000 standard cubic feet of gas per day, equal to around 120 barrels of oil, through an 8/64 inch choke.
The gas being produced is initially being processed at the on-site production facilities and then delivered to a third-party operated gas processing plant. There it is further treated to the required pipeline specification, before being sent into the high pressure gas network for delivery to an end user.
As it is the first tranche of production to be extracted from the reservoir, Oilex said it will monitor it closely to ensure the company gains a better understanding of the field's potential.
Importantly, the company and its partner has approval to sell that gas over a three-month period whilst it waits to complete and secure approval for its field development plan for the field.
Oilex holds a 40% stake in Bhandut field alongside its partner, Gujarat State Petroleum Corp.
By Joshua Warner; [email protected]; @JoshAlliance
Copyright 2016 Alliance News Limited. All Rights Reserved.
Related Shares:
OEX.L