7th May 2009 07:00
7 May 2009
CAMBAY-75 OPERATIONS REPORT - GUJARAT INDIA
Oilex advises that the Cambay-75 appraisal/development well has reached total depth of 1,580 metres and wireline logging operations have been completed. The well intersected good quality MBS sands, the uppermost unit of which (1 metre thick) contains gas and the remainder of the unit is interpreted to be water bearing with significant oil shows and high residual gas saturations which are not commercially producible in this well.
The interpretation of the logs indicates that the MBS sandstone is about 7 metres thick and of good quality with average porosity 26%. The uppermost sandstone of 1 metre thickness is gas-bearing and overlies a water bearing interval that also contains significant gas saturations and oil shows. The MBS reservoir pressure is lower than virgin pressure but clearly not in direct communication with Cambay-74 and Cambay-64 and most likely separated by a small but linearly persistent fault. The fault is difficult to interpret from the seismic data. It may divide the structure into a western and eastern compartment, the former having been evaluated by Cambay-75. This area may be in communication with the Akhol Juni Field operated by ONGC adjacent to the western Cambay block boundary which has been producing oil from the MBS at relatively low rates over a long period of time.
The OS II sandstones in Cambay-75 are poorly developed as 3 separate thin units each up to 1.5 metres thick. High gas readings were recorded while drilling although the log analysis indicates the presence of water with gas.
The Cambay-75 well will be plugged back and suspended enabling future re-entry if warranted by further analysis.
Future Cambay Work Program Miocene MBS - analysis of the well results will be incorporated into the geological model to determine further potential well locations for both oil and gas. Whilst oil was the primary objective at Cambay -75 the discovery of gas in this part of the block at MBS provides an additional reservoir target which in combination with gas already discovered at other geological levels and the MBS in the northern part of the block could form the basis of a future gas project at Cambay
The eastern flank of the main MBS structure is about the same area as the western flank and may be better located to receive and preserve hydrocarbon charge from the main basin to the east. The prime objective of the work program remains to develop the oil production of the MBS.
Gas Appraisal Project - gas has been proven at the level of Miocene, Oligocene and Eocene in many of the old wells and in the wells drilled last year at Cambay. The field has previously produced gas from the Oligocene and Miocene. Substantial resources of gas remain at Cambay and were the initial focus of the drilling program in 2008. The assessment of the commercial and technical aspects of the project remain high priority to be completed before further drilling.
Participants in the Cambay Production Sharing Contract are:
Joint Venture Party Participating Interest Oilex (Operator) 45% Gujarat State Petroleum Corporation Limited 55%
* Oilex participating interest held by Oilex Ltd (30%) and its wholly owned subsidiary Oilex NL Holdings (India) Limited(15%).
Figure 1. MBS depth structure map with well locations and reservoir compartments(please see Oilex website for full report).
Yours sincerely,B. H. McCarthyManaging Director
For further information, please contact:
Ray Barnes Technical Director, Oilex Ltd Tel. +61 8 9485 3200 (Western Australia)
Archie Berens Director Pelham Public Relations Tel. +44 20 7743 6679 (United Kingdom)
RFC Corporate Finance Ltd acts as Oilex's Nominated Adviser, contact Stuart Laing +618 9480 2506.
The information in this report has been compiled by the Managing Director of Oilex Ltd, Bruce McCarthy B.Sc. Hons PhD (Geology) who has over 29 years experience in petroleum geology and Ray Barnes, B.Sc. Hons the Technical Director of Oilex Ltd who has over 35 years experience in petroleum geology and is a member of the AAPG & EAGE. Estimates of oil-in-place are reported in accordance with the standard definitions set out by the Society of Petroleum Engineers,further information on which and a glossary of terms used in the oil and gas industry is available at www.spe.org.
vendorRelated Shares:
OEX.L