12th Apr 2006 07:00
OILEX NL12 April 2006AIM LSEDear Sir,RE: oilex consortium awarded block 56 in omanAs advised in our release of 31 March 2006, the Government of the Sultanate ofOman has awarded Block 56 to a consortium led by Oilex (as operator), subjectto signing an Exploration & Production Sharing Agreement. Block 56 was Oilex'sfirst choice block and the highest rated of the blocks on offer in the bidround that closed on 1 January 2006. The block is located onshore, adjacent toproducing fields operated by PDO, the Oman national oil company, in the SouthOman Salt Basin, which is one of the main producing basins in Oman.The acreage on offer in the recent bid round comprised three blocks on theeastern side and 2 blocks on the western side of the South Oman Salt Basin (seemap). The recognition of 20 structural leads and the possibility of anextension of the proven Ara salt play across Block 56 justified a comprehensivework program set out in the Consortium's bid application. Potential has beenrecognized for targets ranging from the Cambrian Buah formation to theCretaceous Wasia group in areas where depth of burial is sufficient to mitigatethe biodegradation of oil at the shallower levels.The possible presence of a thicker sedimentary section in the eastern areaimplying a more extensive distribution of the Ara Salt unit into Block 56raises the possibility of salt related structures similar to those producing tothe west in the main salt basin.The density and quality of seismic coverage was not considered to be sufficientto identify immediately drillable prospects and 2D and 3D seismic acquisitionis a prominent component of the proposed work programme. The value of the workprogramme is estimated to be about US$7.5 million net to Oilex over the initial3 year term. Drilling is expected to start first half 2007.The award completes another element of the company's stated strategy ofacquiring high quality exploration acreage in countries around the Indian Oceanrim in joint venture with its Indian alliance members. [NOTE THIS MAP MAYBE VIEWED ON OUR WEBSITE www.oilex.com.au ] Map of Oman showing Block 56 in relation to the South Oman Salt BasinThe consortium comprises Oilex (25% and Operator), Gas Authority of India(25%), Videocon Industries Ltd (25%), Hindustan Petroleum Corporation Ltd(12.5%) and Bharat Petroleum Corporation Ltd (12.5%) from India. The award wasmade subsequent to evaluation of offers made under the recent bidding roundthat closed on 1 January 2006.For and on behalf of the BoardDr. Bruce McCarthyManaging Directorcc: Directors: MC/RB/GIJInformation in this report has been compiled by the Managing Director of OilexNL Dr B.H. McCarthy B.Sc Hons.PhD(Geology) who has over 26 years experience inpetroleum geology. Level 3, 50 Kings Park Road West Perth Western Australia 6005 P.O. Box 588 West Perth Western Australia 6872 Telephone (61 8) 9226 5577 Facsimile (61 8) 9226 2108 email: [email protected] www.oilex.com.au ENDOILEX NLRelated Shares:
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