7th Oct 2008 07:00
7 October 2008
SUBJECT: OPERATIONS REPORT - OMAND AND INDIA
Oilex advises that drilling and testing operations continue in India and Oman:
* At Cambay-19Z in India, a cased hole test (DST #3) of the EPIII and EPIV
primary reservoir flowed oil and gas to surface at unstabilised
intermittent rates ranging from 20-55 barrels of oil with associated gas.
With this encouraging initial result, planning of a suitable fracture
simulation program is underway for this interval in Cambay-19 as the next
step in the process of establishing the maximum flow rate from this interval. The workover rig is now moving to the Cambay-73 location to fracture stimulate and test the EPIII and EPIV zone in this well.
* The Cambay 74 well spudded on October 3 and is currently drilling ahead at
a depth of 403 metres.
* In Oman, a horizontal section in the Sarha-2 well is being drilled in the
oil bearing Al Khlata reservoir at a measured depth (MD) of 1710 metres in
preparation for an extended production test. 250-300 metres of sandstones
with excellent oil shows have been penetrated. A cased hole test (DST#1) of
the shallower Rahab sandstone was not conclusive; the production potential
of this not previously recognised zone will be reviewed once Sarha-2 core
data has been analysed.
Cambay-19Z appraisal well - India
Objectives: Primary: Oligocene OS II - gas Eocene EP III and EP IV - gas / oil Basal EP IV - oil Status: Suspended pending stimulation (fraccing). Operations: Mobilising workover rig to Cambay 73 location. Comment Although continuous slugging of oil and gas at surface has prevented the determination of a stabilised flow rate from the EPIII/IV reservoir, the measurement of average rates of up to 55 bopd during the test period provides encouragement for the commercial development of this reservoir. Fracture stimulation carried out in this unit previously indicate that a substantial gain in rate can be achieved with stimulation (4-5 times unstimulated rate).and further enhancement could be achieved by multiple fracture stimulations in a horizontal well.
Cambay-74 appraisal well - India Objectives: Primary: Oligocene OS II - gas Eocene EP III and EP IV - oil Basal EP IV - oil Secondary: Miocene Basal Sandstone - gas Deccan Fractured Basement - oil Status: Current depth 403 metres.
Operations: Drilling ahead in 17 1/2' hole to section total depth at 600
metres. Comment: Cambay-74 well is located on the western flank of the Cambay high and will test all the identified reservoir intervals in a location where early wells flowed oil and gas. The well will
particularly
target the better sandstone development in the basal EPIV reservoir indicated by existing well data. This zone tested oil at rates up to 200 barrels per day in the recently drilled Cambay-19 well. Sarha-2 appraisal well - Oman Objectives: Primary: Al Khlata Formation
Status: Current Depth : 1,430 metres
Operations: Drilling horizontal production well
Comment: Results from the cased hole test results of the Rahab sandstone
interval from 1290 metres to 1305 metres were not conclusive. Core taken in the Rahab interval is currently being analysed to confirm the reservoir and oil properties, noting that oil was
circulated
to the surface while this interval was being drilled. Drilling of the horizontal production interval in the Al Khlata sandstone is continuing. To date, 250-300 metres of sandstones with excellent oil shows have been penetrated. Participants in the Oman Block 56 Exploration and Production Sharing Agreementare:Joint Venture Party Participating Interest
Oilex Oman Limited (Operator) 25%
Videocon Industries Limited 25% GAIL (India) Limited 25%
Hindustan Petroleum Corporation Limited 12.5%
Bharat PetroResources Limited 12.5%
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,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 29 yearsexperience 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 of oil-in-place are reported inaccordance with the standard definitions set out by the Society of PetroleumEngineers, further information on which and a glossary of terms used inthe oiland gas industryis available at www.spe.org.
vendorRelated Shares:
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