9th Sep 2008 07:00
09 September 2008
SUBJECT: OPERATIONS REPORT - OMAN AND INDIA
Oilex advises that drilling operations have resumed in Oman and drilling and testing continues in India.
* Sarha-2 the first appraisal well that is designed as a future oil producer on the Sarha structure in Block 56, Oman spudded on 4 September and is drilling ahead to the second casing point. * In India, the workover rig resumed operations on Cambay-19Z after a period waiting on chemicals and equipment for the cased hole testing program starting with Drill Stem Test (DST) #2 over an interval of additional perforations similar to the zone that tested oil from DST #1. * Cambay-73, the third well in the Cambay Field appraisal program, is at a depth of 2,030 metres and preparing to drill ahead to the Deccan Basement objective. Sarha-2 appraisal well- Oman Objectives: Primary: Al Khlata Formation - oil Secondary: Gharif Formation - oil Haima Formation - oil Status: Spud: 23:50 hrs on 05 September 2008 Current Depth: 800 metres Total Depth (TD): 1,763 metres (pilot hole) 1,938 metres (horizontal production well) Operations: Drilling ahead in 121/4" hole. Comment: The well will be drilled as a pilot hole to 1,763 metres to evaluate all reservoir objectives into the top of the Huqf Formation carbonates. On reaching total depth, the well will be plugged back to the 9 5/8" casing shoe and a horizontal well of 500 metres length will be drilled into the Al Khlata Formation sandstone which flowed oil to surface in Sarha-1.
Cambay-19Z 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: Daylight only operations are continuing in preparation for cased hole DST #2.
Operations: Essential equipment and materials arrived at the Cambay-19Z
location and preparations are being made to complete the logging program and conduct DST #2 over additional, deeper units that are similar to the Basal EPIV section that flowed oil in DST #1. Cambay-73 appraisal well- India Objectives: Primary: Oligocene OS II - gas Eocene EP III and EP IV - gas / oil Basal EP IV - oil Secondary: 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: Three open hole drill stem tests were run over the Basal EPIV and
EPIII / EPIV intervals and detailed analysis of the test results is continuing. Small volumes of oil and gas were recorded at surface and one test was a technical failure. Operations to recover equipment lost downhole were successfully concluded. Casing has been run and cemented and the well will be drilled through the Deccan Volcanics / fractured basement objective.
Participants in the Block 56 Exploration and Production Sharing Agreement are:
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 Petroleum Corporation 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 of Oilex Ltd, Bruce McCarthy B.Sc. Hons. PhD (Geology) who has over 29years experience in petroleum geology and Ray Barnes, B.Sc. Hons. the Technical Director of Oilex Ltd who 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 and a glossary of terms used in the oil and gas industryis available at www.spe.org.
vendorRelated Shares:
OEX.L