29th Jun 2015 07:54
LONDON (Alliance News) - Oilex Ltd Monday said gas sales have commenced from the Cambay-73 well in India and said production will continue to grow in the second half of the year as another well is brought online and others undergo workovers.
Cambay-73 produced initial results of over 95 barrels of oil equivalent per day, which was above expectations, but production is currently at around 50.5 barrels of oil equivalent per day, though this is set to increase, Oilex said.
In the second half of the year, Cambay-77H will come online and workovers on five other wells will be completed. By the end of 2015, Oilex is expecting its operations to be cash flow positive.
"Oilex Ltd is pleased to announce the commencement of gas sales from Cambay-73 into the low pressure local market near the Cambay field," said the company. "Demand for gas from local light industrial businesses is ongoing, with expressions of interest to purchase gas continuing to be received by Oilex."
"The commencement of gas production from Cambay-73 facilities is a significant milestone for Oilex and marks the first step on the path to achieving positive cash flow from operations in India," said Managing Director Ron Miller.
Despite the positive news, Oilex shares were down 7.3% to 3.13 pence per share on Monday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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