29th Jan 2008 07:00
29 January 2008
SUBJECT: OPERATIONS REPORT - OMAN DRILLING PROGRAM
Oilex Ltd advises that preparations to run a cased hole production test are continuing in the Sarha-1 exploration well in the Block 56 Exploration and Production Sharing Agreement area, Oman. An inflatable packer has been set at a depth of 1676 metres Measured Depth (MD) to isolate the highly fractured deeper section of the Huqf carbonates where total losses of drilling fluids were experienced while drilling and 7 inch casing has been run to a depth of 1626 metres MD. Once the casing has been cemented and additional cased hole wireline logging conducted, production testing of 4 potential oil zones recognised from shows and log evaluation will commence.
The objective of the testing program is to determine whether moveable hydrocarbons are present in the Huqf carbonates, the Haima Sandstone, the Al Khlata Formation and the Lower Gharif sandstone as tabulated below:
Objective Test Gross Interval(metres MD) Haima/Huqf Open Hole 1626 - 1676 Al Khlata Cased hole 1255 - 1295 Lower Gharif Cased Hole 1165 - 1185
The quality of the oil in the oil fields of the South Oman Salt Basin is variable from lighter, mobile fluid to heavier, viscous oil. In the event that "heavier" oil is present in these reservoirs at Sarha-1, testing of these zones may require the installation of a pump and an extended flow period before stabilised rates can be established.
Participants in the Block 56 Exploration and Production Sharing Agreement areaare:Joint Venture Party Participating Interest Oilex (Oman) Ltd (Operator) 25% Videocon Industries Limited 25% GAIL (India) Limited 25% Hindustan Petroleum Corporation Limited 12.5% Bharat Petroleum Corporation Limited 12.5% 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.
OILEX LTDRelated Shares:
OEX.L