17th Jan 2007 07:00
ACTIVITY REPORT-SABARMATI FIELD, GUJARAT, INDIA
Oilex Ltd advises that following approval of the work programme by theGovernment of India, Oilex is initiating field rehabilitation activities on theSabarmati Field. On completion of the first of these activities, Oilex expectsthe production rate from Sabarmati-1 well to increase from the current average2-5 barrels of oil per day to a sustainable rate of 75-90 barrels of oil perday.The field is located on the southern culmination of a trend of producing oilfields operated by ONGC, on the outskirts of Ahmedabad, the largest city inGujarat (Fig. 1). Oil has been produced from the one well in the SabarmatiField Contract Area at very low rates on an intermittent basis since 2001 whenthe Niko-GSPC Joint Venture intervened in the well.
PLANNED WORKOVER
Late last year, in anticipation of approval by the Government of the assignmentof 40% interest from Niko in the field, Oilex commenced an influx study on thepotential productive capacity of the existing well. The rate at which fluidflowed into the well bore under controlled pressure conditions was measuredover a fixed period each day in 2 phases. The fluid was separated through thesurface facilities, measured to ascertain the average water cut and the oil wasstored for later sale to ONGC, the nominated buyer. The proportion of water inthe total fluid volume dropped to about 2% - 5% after the first day of testingand maintained that level for the duration of both phases.The well has produced, in total, about 9,800 barrels of oil since it startedproducing in 2001 and is currently producing at 5-10 barrels of fluid (2-5barrels of oil) per day under natural flow from an Eocene reservoir which isabout 5m thick, through 2m of perforations. The results of the influx studyindicate that the flow rate could be increased to an average sustainable rateof about 75-90 barrels of oil per day with the installation of an hydraulicsucker rod pump. The equipment is on order and is expected to be installed bythe end of February. Existing production facilities at Sabarmati Field arecapable of handling more than 600 barrels of fluid (oil plus water) per day.
PLANNED SEISMIC
From experience at the Cambay Field to the south, a critical component of therehabilitation program is the acquisition of new seismic data. Althoughdifficult to acquire in this built up area, Oilex is investigating thepossibility of conducting a survey within the next 4 months using an innovativelow impact seismic technology which will greatly enhance the potential coverageof the contract area. A single vintage seismic line is the only existingcoverage.
In the event that the seismic survey and estimates of potential reserves justify further work, the intent is to drill additional wells, subject to Joint Venture approval, to improve the field production rate.
Participants in the Sabarmati Production Sharing Contract are:
Joint Venture Parties Participating Interest Oilex NL (India) Holdings Ltd (Operator)* 40% Gujarat State Petroleum Corporation Ltd 60%(GSPC)
* A wholly owned subsidiary of Oilex Ltd
To view Figure 1 - refer to the Oilex Website, or the Australian Stock Exchange Release of today's date.
Yours sincerely,Bruce McCarthyManaging Director
OILEX LTDRelated Shares:
OEX.L