7th Dec 2006 07:00
07 December 2006
OILEX
FORWARD WELL PROGRAMME - CAMBAY FIELD, GUJARAT,INDIA
Oilex Ltd is pleased to advise that its recommendation for the completion and testing of the Cambay-72 well has been accepted by the Government and Joint Venture parties ("JV"). The immediate forward programme is to procure the services and workover rig to conduct a comprehensive test programme on Cambay-72 with the aim of commencing operations at the earliest opportunity in January.
Deepening and testing of the Cambay-71 well has been approved in principle and a final decision will be taken when the results from testing of Cambay-72 and preliminary results of the 3D seismic survey (see below) are known. Operations are expected to commence in first quarter 2007.
Cambay-72
The well was drilled to a total depth ("TD") of 1767m at which depth 51/2" casing was cemented in place and it was suspended. The Eocene section below about 1730m is significantly over-pressured and gas and oil flowed to surface during drilling. Evaluation of the data from the Eocene section has been concluded and a comprehensive testing programme has been agreed by the JV. Oilex is pursuing supply of equipment and a workover rig to undertake the work at the earliest opportunity. In the event that the Eocene tests are successful, the well will be placed on production and the testing of the shallower potential oil and gas bearing zones may be postponed to a later date. Testing operations are expected to begin in January, as soon as equipment is procured.
Cambay-71
Cambay-71 intersected a section similar to that of Cambay-72 and was terminated above the over-pressured Eocene section at 1600m TD to allow for the option to test the Eocene potential reservoir horizons through larger diameter casing. Indications of hydrocarbons were recorded while drilling the main prognosed shallower reservoir intervals in this well. The potential remains to be confirmed because attempts to gather reliable pressure and fluid information from the shallower objectives were unsuccessful due, in part, to apparent plugging of the tools by very friable sand and mechanical failures.
Unlike Cambay-72, casing was not run in Cambay-71 through the potential oil and gas bearing zones and the plan is now to run 7" casing and to drill a larger diameter hole through the deeper Eocene objectives to the top of the Deccan basalts. Reservoir units immediately overlying the Deccan have been drilled and tested at rates in excess 1,000 bopd in the block immediately to the north of Cambay and equivalent intervals may be present at the Cambay-71 location. The 3D seismic survey may be useful as an indicator of the presence of the deeper targets and that will be determined from the preliminary field seismic data which should be available within the next two weeks, at the same time as we proceed with assessing the availability of a rig and services.
3D Seismic Survey
The 3D seismic survey covering the entire Cambay contract area (160 km2) was completed ahead of time on 5 December, under budget and injury free by the contractor. The preliminary data are of excellent quality and the initial processed data will be available in 5 weeks for interpretation.
Approvals for Assignment of Interests
Oilex is awaiting the approval of the Government of India for the assignment to Oilex of the additional interests in the Cambay, Bhandut and Sabarmati Fields acquired from Niko. Work programmes for Bhandut and Sabarmati Fields will commence when the assignments are approved.
Participants in the Cambay Production Sharing Contract are:
Current Post-approval Interest Interest 3 Oilex Ltd (Operator) 30.00% 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.
Yours sincerely,Bruce 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 on drilling results in this report has been compiled by the Managing Director of Oilex NL, Bruce McCarthy B.Sc. (Hons), PhD (Geology) who has over 27years experience in the oil and gas exploration and production industryandwasreviewed by Ray Barnes, the Technical Director of Oilex NL who has over 35 years experience in oil and gas exploration and production industry and is a member of the AAPG.
2
OILEX LTDRelated Shares:
OEX.L