29th Oct 2007 07:00
29 October 2007
DRILLING OPERATIONS UPDATE - INDONESIA AND INDIA
Indonesia - West Kampar PSC-Pendalian-3:
The 81/2" hole at Pendalian-3 has been drilled to the planned total depth (TD) of 748 metres and wireline logging has been completed. Wireline data confirm that reservoir quality is excellent. The well has been cased and a program comprising 4 firm and one optional cased-hole drill stem tests of the Sihapas Sandstone section has been initiated. The program is designed to test a series of sandstone units which are established producing reservoirs at these depths in nearby fields. Zones agreed for testing are:
DST Potential Oil Zone(Metresbelow KB) #1 - Firm 528 - 541 #2 - Contingent 499 - 511 #3 - Firm 460 - 464 & 466 - 471 #4 - Firm 279 - 292 #5 - Firm 241 - 252
The zones that will be tested by DST's #3, #4 and #5 zones are analogous to zones that tested oil from Pendalian-1.
In contrast, the DST #1 and #2 intervals have not tested oil in earlier wells, although there is some evidence for an oil column from the logs in Pendalian-3.
Participants in the West Kampar Production Sharing Contract are:
Joint Venture Party Participating Interest Oilex 45% Sumatera Persada Energi (Operator) 55%
India - Bhandut PSC - Bhandut-2Z:
The Bhandut-2Z sidetrack well has been drilled to total depth (TD) of 1,121 metres and wireline logging has been completed. The well is being suspended for re-entry at a later date if required. Data acquired includes a velocity survey, the first such survey to be acquired at Bhandut, which will allow the newly acquired 3D seismic survey to be calibrated.
The well was deviated only about 70m to the northwest away from the original bore hole due to the limited capability of the rig. The combination of being close to the water contact and low to prognosis only a relatively short distance from the original well has resulted in being unable to reach a structurally higher location.
The logs indicate that the "G" sand potential oil reservoir was intersected low to prognosis and while indications of oil saturations were observed on wireline logs and core, it is likely that oil at this location has been produced from nearby wells. The velocity data will enable development of more accurate depth maps from the 3D interpretation and better definition of the locations of future wells,
The crest of the structure at the G sand is about 750m to the northwest of the Bhandut-2 location and will be the optimal site of drilling later in the development program for Bhandut field when approvals from the Government for construction of new drilling pads is received.
Bhandut-2Z is a deviated well that was drilled from the surface location of the original Bhandut-2 well which is near to the inferred oil-water contact at the level of the G sand. All of the wells drilled on Bhandut to date are located on the southeastern flank of the structural closure at this stratigraphic level.
Deeper reservoir objectives identified at Bhandut Field will also be drilled from newly built locations when approvals are received later in the development program. Those objectives could not be drilled by Bhandut-2Z, the location of which was constrained by the availability of existing, useable drilling pads.
Participants in the Bhandut Production Sharing Contract are:
Joint Venture Party Participating Interest Oilex (Operator) 40% Gujarat State Petroleum Corporation 60% Yours sincerely,B. H. McCarthyManaging Director
For further information, please contact:
Ray Barnes Technical Director, Oilex Ltd Tel. +61 8 9226 5577 (Western Australia)
Archie Berens Director, Pelham Public Relations Tel. +44 20 7743 6679 (United Kingdom)
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 28 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.
RFC Corporate Finance Ltd acts as Oilex's Nominated Adviser - contact Stuart Laing +618 9480 2506.
OILEX LTDRelated Shares:
OEX.L