27th Sep 2006 10:22
27 September 2006AIM MARKET OF THE LSEDear Sir,RE: cambay field DRILLING PROGRAMME, Cambay- 72 and CAMBAY- 71 wells, gujarat,indiaOilex advises that the Dalma Energy Rig-2 was released from the Cambay-72 wellat 16:30 hrs (Indian Standard Time) on 26 September 2006 after running casingand suspending the well for testing of oil and gas bearing horizons. Thetesting programme will be undertaken using a workover rig during October, whenthe Cambay-71 well is completed, so that both wells can be tested consecutivelyto minimise cost.Cambay-72 Interim Results - Cambay-72 intersected hydrocarbons at the level ofthe primary Oligocene and secondary Miocene and Eocene objectives. The welllogs indicate the likelihood of a significant column of gas in reservoirsandstone of apparently excellent quality at the shallower Miocene objectivefor which no estimate of the likely resource volumes has been calculated todate. The data collected from Cambay-72 generally confirm the estimates ofpossible resource for the OS-II and EP-IV levels that were published previouslyand these data are now the subject of detailed evaluation in preparation forthe testing programme.Cambay-71 - The Cambay-71 well is located on the flank of the northernculmination of the Western High structure about 800 metres to the northeast ofCambay-72 and is expected to intersect a geological section similar toCambay-72. The well is expected to take 8-11 days to reach the planned totaldepth (TD) of 1600m.The primary reservoir objective is the Oligocene sandstone (OS II) and thesecondary objectives are at Miocene and Eocene levels. These sandstonereservoir units are proven producers in fields immediately to the north andsouth of Cambay Field. Oil is being produced on the Western High at low rateson an intermittent basis from wells that have suffered formation and well boredamage in the past.Resource estimates for two potential reservoir units (Oligocene OS II andEocene EP IV) were published in May 2006 and again with the release relating tothe commencement of Cambay-72.Participants in the Cambay Production Sharing Contract ("PSC") are: Current Interest Post-approval Interest 3 Oilex Ltd (Operator) 30% 1 45% Gujarat State Petroleum Corporation Ltd 46.67% 2 55% (GSPC) Niko Resources Ltd 23.33% - 1. Oilex is acquiring an additional 23.33% equity interest in the PSC from Niko, 2. GSPC is acquiring an additional 8.33% equity interest in the PSC from Oilex. 3. Approval is pending for 1. and 2. from the Government of India. Refer website: www.oilex.com.auFigure 1 - Cambay-71 well is located on the Western High Block of Cambay Field,Gujarat, IndiaFor and on behalf of the Board,B. H. McCarthyManaging DirectorFor further information, please contact:Ray Barnes, Technical Director, Oilex Ltd Tel. +61 8 9226 5577 (WesternAustralia)Archie Berens, Director, Pelham Public Relations Tel. +44 20 7743 6679 (UnitedKingdom) Level 3, 50 Kings Park Road West Perth WA 6005 Australia, PO Box 588 West Perth WA 6872 Australia Telephone: (+61 8) 9226 5577 Facsimile: (+61 8) 9226 2108 Email: [email protected] Web: www.oilex.com.au Level 3, 50 Kings Park Road West Perth WA 6005 Australia, PO Box 588 West Perth WA 6872 Australia Telephone: (+61 8) 9226 5577 Facsimile: (+61 8) 9226 2108 Email: [email protected] Web: www.oilex.com.au ENDOILEX LTDRelated Shares:
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