14th Oct 2008 07:00
14 October 2008
EOCENE OIL POTENTIAL CONFIRMED IN CAMBAY INDIA
Summary
The appraisal campaign of drilling completed to date, 3D seismic and extensive analysis undertaken in Cambay Field, Gujarat, India validates the potential of Cambay's Eocene EPIII/IV horizon. The results:
* Support Oilex's target of estimated initial flow rates of 500-1000 bopd per well for the EPIII/IV in future production wells. * Support volumetric best estimate of 48 million barrels for Eocene oil in place in this sector of the field. * Confirm potential production from a new oil zone in the Basal EPIV. * Cambay-74 is currently preparing to drill ahead below 603 metres to appraise the Basal EPIV zone on the western flank of the Cambay Field.
Field Appraisal Campaign Oilex has been conducting an intensive field appraisal campaign in the Cambay Field for the past 6 months with a primary focus on the Eocene and deeper oil potential in the western part of the block.
This appraisal program focussed on assessing the commerciality of hydrocarbon resources allocated to the EPIII/EPIV interval.
Analysis of 65 existing wells and newly acquired 3D seismic data had indicated a best estimate initial-in-place resource of 62 million barrels of oil (including condensate) and 350 bcf of gas (on a 100% basis) calculated for the main EPIV and OSII reservoirs. Of this total volume, 48 million barrels of oil in place was allocated to the EPIII/IV area appraised by new drilling in the western high area of the block.
While the campaign is yet to be completed, analysis of the results to date have returned positive commercial implications for the Eocene EPIII/IV reservoir which validate the potential of this significant Oilex asset.
The analysis of results from Cambay 19Z, 72 & 73 supports Oilex's target of estimated initial flow rates of 500-1000 bopd per well for the EPIII/IV in a high angle deviated production well drilled into the EP III/IV that is fracture stimulated at 4-5 intervals.
Based on a natural flow rate of 50 bopd from a single zone in the EPIII/IV, an improvement by a factor of 2.5 - 5 times applied to 4-5 fracture stimulated intervals in a horizontal or high angle EPIII/IV production well is considered to be reasonable.
In addition to evaluating the EP III and IV zones, this campaign has revealed a new oil zone in the Basal EP IV which had not previously been evaluated and which will be addressed by future drilling.
Next Steps in Cambay Campaign
* With this additional information in hand, planning of high angle oil production wells can be finalised for inclusion in the development plan for the EPIII/IV interval. * A fourth well (Cambay-74) is currently drilling below a depth of 603 metres measured depth. Cambay-74 is a significant step out to the three earlier wells and will evaluate the new oil zone in the basal EPIV where the reservoir is interpreted to be better developed, as well as investigating the Deccan, EPIII/IV and OSII reservoirs on the western side of the field. * A workover rig is mobilising to fracture stimulate Cambay 73. * Fracture stimulation and long term testing of Cambay-23Z are awaiting core analysis results. This well was drilled to assess the gas potential of the EPIII/IV sands in the north eastern part of the field. * Data from Oligocene OSII penetrations acquired in the campaign are being analysed to refine the OSII appraisal program.
Participants in the Cambay Production Sharing Contract are:
Joint Venture Party Participating Interest Oilex Ltd (Operator) 30% Oilex NL Holdings (India) Limited (100% owned by Oilex 15% Ltd) Gujarat State Petroleum Corporation 55%
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 inthe oil and gas industryis available at www.spe.org.
vendorRelated Shares:
OEX.L