26th Aug 2008 07:00
26 August 2008
SUBJECT: OPERATIONS REPORT - INDIA
Oilex advises that Cambay-73, the third well in the Cambay Field appraisalprogram, is at a depth of 2,030 metres and running wireline logs. Based onthese data, hydrocarbon bearing intervals will be selected for open hole drillstem testing ("DST") before running casing and drilling ahead into the Deccanbasement objective.The workover rig has commenced operations on Cambay-19Z to continue thedrillstem testing ("DST") program of the extensions to the Basal EP IV oilzone.Cambay-19Z appraisal well Objectives: Primary: Oligocene OS II - gas Secondary: Eocene EP III and EP IV - oil Basal EP IV - oil Miocene Basal Sandstone - gas Deccan Fractured Basement - oil Status: The workover rig has commenced operations in preparation for conducting cased hole DST #2. Operations: During the past week, rigging up operations were completed and the well bore has been cleaned and stabilised in preparation for DST # 2, 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 units 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 Secondary: Eocene EP III and EP IV - gas / oil Basal EP IV - oil Miocene Basal Sandstone - gas Deccan Fractured Basement - oil Status: Spud: 03:00 hrs 25 July 2008 Current Depth: 2,030 metres Total Depth(TD): 2,205 metres (planned) Operations: Drilled 8 1/2" hole to 2,030 metres with frequent hole conditioning. Wireline logs were run and are of good quality. Formation pressure measurements are being recorded to conclude the logging program. Preliminary analysis of logs and gas readings recorded while drilling indicate the presence of a number of potential hydrocarbon bearing zones which will be evaluated in an open hole drill stem testing program. On conclusion of logging and possible testing, casing will be run and cemented and the well will be drilled through Deccan Volcanics. 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% A glossary of terms used in the oil and gas industry and useful links to otherglossaries can be found at http://www.spe.org/spe-app/spe/industry/reference/glossary.htmhttp://www.spe.org/spe-app/spe/industry/reference/glossary.htm, thewebsite of the Society of Petroleum Engineers.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 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