19th Nov 2007 07:00
OILEX LTD19 November 2007
Centralised Company Announcements Office
Australian Stock Exchange Limited
10th Floor20 Bond StreetSydney NSW 2000Dear Sir,
subject: Pendalian-3 Preliminary Test results
Pendalian-3 - West Kampar PSC - Indonesia
* Pendalian-3 has tested oil from 2 zones at commercial rates. * The Operator reports an upgraded maximum flow potential of 916 barrels oil per day (bopd) for the interval tested by Drill Stem Test (DST) #4. Production rates of 400-650 bopd are likely from this zone. This is incremental to the result from DST #3. * DST #3 (reported in a previous release) calculated maximum flow potential is 1,285 bopd. Production rates in the range 700-900 bopd are likely from this zone.
The Operator, Sumatera Persada Energi, has advised that down hole gauges have been recovered and preliminary flow potential estimates have been calculated for the zone 279 - 292 metres below KB, the interval tested in DST #4. With the additional information available, the Operator upgraded the preliminary estimate provided in the previous release.
The Operator's new estimate of the Productivity Index for this zone, DST #4, is 2.23 barrels per day per psi measured from the test with an estimated reservoir pressure of 424 psi, inferring a maximum flow potential from this zone of 916 barrels per day and suggests that production rates in the range 400-650 bopdare likelyonce artificial lift is installed. This zone offers substantial incremental production potential to the deeper sand tested by DST #3.
The Operator's estimate of the Productivity Index for the zone tested by DST #3 is 2.32 barrels per day per psi which, given an estimated reservoir pressure of 569 psi, indicates that the maximum flow potential from this zone is 1285 barrels per day.Production rates in the range 700-900 bopdare likelyonce artificial lift is installed. Further analysis of downhole pressure data from both DST #3 and DST #4 is in progress to confirm these preliminary results.
Note that due to the shallow depth of the reservoir and low volume of associated gas, production from the Sihapas Sandstone oilfields in adjacent areas is carried out by installing beam pumps from inception to provide artificial lift.
DST #5, the next test in the sequence and the test of the shallowest potential oil-bearing interval in the well, is in progress and results are expected this week.
Participants in the West Kampar Production Sharing Contract are:
Joint Venture Party Participating Interest Oilex Ltd 45% Sumatera Persada Energi (Operator) 55% 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)
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 28 years 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.
RFC Corporate Finance Ltd acts as Oilex's Nominated Adviser - contact Stuart Laing +618 9480 2506.
ABN 50 078 652 632 Level 3, 50 Kings Park Road West Perth WA6005Australia, PO Box 588 West PerthWA6872Australia Telephone:(+61 8) 9226 5577 Facsimile:(+61 8) 9226 2108 Email: [email protected] Web: www.oilex.com.au
OILEX LTDRelated Shares:
OEX.L