16th Sep 2008 07:00
16 September 2008
SUBJECT: OPERATIONS REPORT - OMAN AND INDIA
Oilex advises that drilling and testing operations continue in India and Oman:
* In Oman, Sarha-2 is drilling ahead after cutting the first of 2 cores at a
depth of 1313 meters (Measured Depth) in the oil bearing Al Khlata
formation. The Al Khlata reservoir was intersected 19 metres higher than at
the Sarha-1 well implying a gross oil column of approximately 60 metres;
excellent oil shows were observed in the reservoir interval.
* In India, following the acquisition of a Vertical Seismic Profile survey in
well Cambay 19Z, perforating guns are being run prior to initiating a cased
hole testing program over a number of zones throughout the basal EPIV interval. * Cambay-73, the third well in the Cambay Field appraisal program, has reached total depth of 2435 metres in the Deccan Volcanics and wireline
logs have been run and are currently being reviewed before finalising the
completion strategy for this well.
Sarha-2 appraisal well - Oman Objectives: Primary: Al Khlata Formation - oil Secondary: Haima Formation - oil Status: Current Depth: 1313 metres Total Depth (TD): 1,763 metres (pilot hole) 1,938 metres (horizontal production well)
Operations: Drilling ahead in 8 1/2" hole.
Comment: The Al Khlata oil zone was intersected on prognosis some 19 metres higher than at the Sarha-1 discovery well, implying a gross oil column of approximately 60 metres at the Sarha-2 location. Excellent oil shows were observed in the Al Khlata reservoir interval.
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: A Vertical Seismic Profile has been recorded and perforating guns have been run prior to perforating and testing a total of 25 meters of the basal EPIV interval where positive indications of hydrocarbons have been interpreted from logs.
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: Total Depth: 2,435 metres Operations: The well has been drilled to penetrate a total of 405 metres of the Deccan Volcanics / fractured basement objective. Wireline logs have been run and are being evaluated prior to determining the completion strategy for this well. 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 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 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 ofoil-in-place arereported inaccordance with the standard definitions set out by the Society of PetroleumEngineers, further information on which and a glossary of terms used in the oiland gas industryis available at www.spe.org.
vendorRelated Shares:
OEX.L