1st Jul 2008 07:00
1 July 2008
SUBJECT: OPERATIONS REPORT INDIA
Cambay-19Z Appraisal Well - Oilex advises that preparations are being made for a series of cased hole drillstem tests to evaluate intervals that are interpreted to contain hydrocarbons from logs run during the past week. The tests will be run at progressively shallower intervals to determine reservoir pressure and fluid composition commencing with the basal sand overlying the Deccan basement, followed by the Eocene EP III and EP IV combined and the Oligocene OS II and Miocene MBS units.
* The first test will be conducted at the level of the basal sand overlying the Deccan basement. A 6 metre interval (1,966 metres - 1,972 metres of a gross 35 metre interval) that gave the best indication of hydrocarbons from the logs over this zone will be tested. This zone was a secondary exploration objective in this well. * The EP III and EP IV primary objectives will be tested over a gross interval of 34 metres between 1,764 metres - 1,798 metres. These zones exhibited good gas shows while drilling. * The logs from Basal Miocene and Oligocene OS II secondary objectives in this well intersected at 1,505 metres and 1,545 metres respectively indicate the presence of about 9 metres of gas-bearing pay in these sandstones that are of good reservoir quality, each with about 25% average porosity. * The Deccan Basalt, a secondary exploration objective in this well appears to have a poorly developed fracture system. It remains an exploration objective in other wells that will be drilled later in the current sequence.Figure1. CAMBAY 19ZSpudded 14 May 08Schematic well diagram (see report posted on Oilex website)
In the case of a successful oil test, the well will be completed for near-term production and in the case of a gas test, the well will be suspended for production at a later date.
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 15% Oilex Ltd) Gujarat State Petroleum Corporation 55%
A glossary of terms used in the oil and gas industry and useful links to other glossaries 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, the website 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 9226 5577 (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 29years experience in petroleum geologyand Ray Barnes, B.Sc. Hons.the Technical Director of Oilex Ltdwho has over 35 years experience in petroleum geology and is a member of the AAPG & EAGE. Estimates ofoil-in-place arereported in accordance with the standard definitions set out by the Society of Petroleum Engineers, further information on which is available at www.spe.org.
vendorRelated Shares:
OEX.L