19th Aug 2008 07:00
19 August 2008
SUBJECT: OPERATIONS REPORT - INDIA
Oilex advises that Cambay-73, the third well in the Cambay Field appraisalprogram, is drilling ahead having set intermediate casing at a depth of 1,600metres. A workover rig has been mobilised to the location of Cambay-19Z and isrigging up to continue testing hydrocarbon-bearing intervals identified in thedeeper Basal EP IV oil zone.Cambay-19Z appraisal well Objectives: Primary: Basal EP IV - oil Eocene EP III and EP IV - oil Secondary: Oligocene OS II - gas Miocene Basal Sandstone - gas Deccan Fractured Basement - oil Status: A workover rig has been mobilised and is rigging up on site. Monsoonal flooding limited access to the site, however rigging up is now nearing completion. Operations: Testing operations are likely to commence within the next 2 - 5 days. DST #2 will be carried out over a potential oil zone similar to the Basal EP IV. The test interval will comprise an additional 29 metres of perforations over a number of separate zones of variable thickness between 1,990 - 2,068 metres. Comment: The Basal EP IV zone is present in at least three old wells on the Western High Block. These old wells were either not tested or were poorly evaluated and appear to have a similar log response to the zone that was successfully tested in Cambay-19Z. Preliminary indications from seismic and the analogous well logs are that the Basal EP IV may extend across the Western High Block.
Cambay-73 appraisal well
Objectives: Primary: Oligocene OS II - gas Eocene EP III and EP IV - gas Basal EP IV - oil Secondary: Miocene Basal Sandstone - gas Deccan Fractured Basement - oil Status: Spud: 03:00 hrs 25 July 2008 Current Depth: 1,600 metres Total Depth (TD): 2,205 metres (planned) Operations: Conditioned and circulated gas out of hole. Repaired rig. Run and cement 9 5/8" casing to 1,600 metres. Drill out in 8 1/2" hole. Comments: Cambay-73 is a vertical well that has been located to drill the OS II and EP III-IV primary objectives on the crest of the structure near to the fault that separates the Western High Block from the Basin Gas Area. The well is also designed to intersect the Basal EP IV oil zone on the Western High Block at a favourable structural location.
Figure 1. Cambay-73 Drilling Summary (see report on Oilex website)
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,R. G. BarnesTechnical 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 ofOilex Ltd, Bruce McCarthy B.Sc. Hons. PhD (Geology) who has over 29yearsexperience in petroleum geology and Ray Barnes, B.Sc. Hons. the TechnicalDirector of Oilex Ltd who has over 35 years experience in petroleum geology andis a member of the AAPG & EAGE. Estimates ofoil-in-place arereported inaccordance with the standard definitions set out by the Society of PetroleumEngineers, further information on which is available at www.spe.org.
vendorRelated Shares:
OEX.L