31st Oct 2014 08:55
Summary
CAMBAY PSC (45% & OPERATOR), ONSHORE GUJARAT, INDIA
· Fracture stimulation completed
· All isolation plugs successfully milled out
· Gas and light oil flows to surface during flow-back and light oil recovered for sale
· Higher than expected proportion of light oil particularly encouraging
· Gas Sales Agreement for Cambay-73 endorsed by Government of India
SPA 17 AO (100% & OPERATOR), ONSHORE CANNING BASIN, WESTERN AUSTRALIA
· Final interpretation of 4,060 line km gravity gradiometry/magnetic survey received
· Confirmation of the Wallal Graben extension into adjacent Oilex acreage SPA 17 AO
· Application for formal exploration permit commenced on an exclusive basis
CORPORATE
· Raised £1.17 million (AUD2.13 million) before costs via drawdown on the Equity Financing Facility with Darwin Strategic Limited
· Raised $1.08 million through conversion of listed options to fully paid shares
Operations review
HEALTH, SAFETY, SECURITY AND ENVIRONMENT
No Lost Time Incident recorded during the quarter.
TOTAL NET OIL PRODUCTION - 1,711 BBLS up 257% from last quarter
CAMBAY FIELD, GUJARAT, INDIA
(Oilex: Operator and 45% interest)
During the reporting period:
· The Cambay Field produced 3,311 barrels of oil (1,490 barrels net to Oilex).
· Remaining fracture treatments were completed. The reservoir responded to all treatments in a similar manner.
· During the system wide pressure test to 9300 psi, a leak developed in the "frac tree". Faulty components were replaced with spare components pre-positioned at the well site, before proceeding further.
· Plug milling operations were completed with gas flowing to surface during the milling operations.
· Light oil (average API 48.3º) flowed to surface and was recovered for sale at a local refinery.
· Hydrocarbon liquid to gas ratio was calculated during the quarter to be ~100 bbls of hydrocarbon liquid per MMscf of gas, which is approximately 250% higher than anticipated in the well design.
· Samples of the oil, gas and water were shipped to facilities for analysis. Analysis confirms the sample water is consistent with frac water and not formation water.
· Pressure data indicated a partial clogging of the well bore perforations and interpreted to be caused by residue from the breakdown of the polymer gel, used in frac fluid, and very fine particulate matter.
· A remedial treatment plan using coil tubing to deliver chemical flush to clear the blockages. The treatment was successfully completed and led to increased flowback rates.
· Initial compositional analysis of the separator gas from Cambay-77H is directly comparable to Cambay-73. As such Oilex has sought Joint Venture and Government of India endorsement to sell Cambay-77H separator gas into the local "off-spec" gas market.
· Gas Sales Agreement for Cambay-73 endorsed by the relevant Government of India authorities. This is a critical milestone for producing gas from the field and supplying gas to the local market.
Subsequent to the reporting period:
· During a planned operation to change the frac tree to a standard production tree, a retrievable bridge plug did not seal properly and moved downhole where it became stuck. Recovery operations were successfully completed in 13 days.
· Cambay-77H continues to recover water, light oil and gas on a steady flowing tubing head pressure ("FTHP") of ~220 psi on a 24/64th inch choke. Preparations have commenced to undertake the production test at Cambay- 77H. Successful completion of the test should enable the Cambay JV to progress putting the well into gas production.
BHANDUT FIELD, GUJARAT, INDIA
(Oilex: Operator and 40% interest)
· Tender evaluation results for Bhandut-3 future gas sales remain with the Government of India for endorsement.
SABARMATI FIELD, GUJARAT, INDIA
(Oilex: Operator and 40% interest)
· The Sabarmati Field produced 552 barrels of oil (221 barrels net to Oilex) during the reporting period.
· Production ceased on 21 September in accordance with the expiry of the Production Mining Lease as preparations are being made to relinquish the PSC because the production reached its economic threshold.
SPA 17 AO Wallal Graben, CANNING BASIN, WESTERN AUSTRALIA
(Oilex: Operator and 100% interest)
· Oilex received the final interpretation report for the 4,060 line km gravity gradiometry/magnetic survey ("Survey") data conducted over SPA 17 AO (formerly STP-SPA-0055).
· The final interpretation confirms Oilex's structural model of the Wallal Graben, which is clearly imaged by 2D seismic data in the Company's adjacent permits, extends into SPA 17 AO. The graben is present in Oilex's three, 100%-owned, exploration areas encompassing approximately 17,900 km2 (~4.4 million acres).
· The Wallal Graben appears to have significant unconventional play-types consistent with those identified elsewhere in the Canning Basin. Amongst these play types Oilex has identified large areas of what is thought to be the prospective Bongabinni and Goldwyer Formations, which are proven source rocks in the Canning Basin and are the target of significant exploration as unconventional reservoirs.
· Application for formal exploration permit has commenced on an exclusive basis.
· Farm-out activities are in progress and the new data will be incorporated into the discussions with prospective farminees.
STP-EPA-0106, STP-EPA-0107 CANNING BASIN, WESTERN AUSTRALIA
(Oilex: Operator and 100% interest)
· Negotiations with Traditional Owners on Native Title agreement(s) are continuing and upon finalisation of the agreement(s), the regulatory process of conversion to a formal exploration permit will commence.
JPDA 06-103, TIMOR SEA
(Oilex: Operator and 10% interest)
· Further extension of PSC suspension to 15 January 2015 has been granted while awaiting outcome of termination in good standing application.
WEST KAMPAR PSC, CENTRAL SUMATRA, INDONESIA
(Oilex: 45% interest and further 22.5% secured*)
· Following an action commenced by a creditor against PT Sumatera Persada Energi, the Commercial Court in Jakarta on 1 September 2014 has granted an application for "Temporary Suspension of Payment Obligation" for 45 days. During this time a series of meetings will be held with creditors to discuss a composition plan, managed by an administrator team appointed by the Court. Oilex is currently obtaining legal advice to determine the appropriate course of action to ensure recovery of secured debt.
NEW OPPORTUNITIES
· The Company continued to review and evaluate suitable projects that are consistent with its Indian Ocean Rim strategy and onshore focus. A number of opportunities have been identified and will be pursued at the appropriate time relative to the Company's priority focus on Cambay-77H well.
CORPORATE
· The Company raised £1.17 million (AUD$2.13 million) before costs via drawdown on the Equity Financing Facility with Darwin Strategic Limited.
· The Company raised AUD$1.08 million via the conversion of listed options during the quarter.
· At the end of the quarter the Company retained a cash position of AUD$5.1 million.
· Dr Bruce McCarthy will retire as a Non-Executive Director at the close of Oilex's AGM to be held on 18 November 2014.
The Company's website www.oilex.com.au is regularly updated with current information.
CORPORATE DETAILS | ||
Board of Directors | Share Registry | |
Max Cozijn | Non-Executive Chairman | Security Transfer Registrars Pty Ltd 770 Canning Highway Applecross WA 6153, Australia Telephone: +61 8 9315 2333 Facsimile: +61 8 9315 2233 Email: [email protected]
Computershare Investor Services PLC The Pavilions Bridgwater Road Bristol BS13 8AE United Kingdom Telephone: +44 (0) 870 703 6149 Facsimile: +44 (0) 870 703 6116 |
Sundeep Bhandari | Non-Executive Vice Chairman | |
Ron Miller | Managing Director | |
Bruce McCarthy | Non-Executive Director | |
Company Secretary | ||
Chris Bath
| Chief Financial Officer & Company Secretary | |
Capital Structure as at 30 September 2014 | ||
Ordinary Shares 616,927,809 | Stock Exchange Listing | |
Listed Options 188,599,091 | Australian Securities Exchange Code: OEX | |
Unlisted Options 38,962,500 | AIM Market of London Stock Exchange Code: OEX | |
ASSET SCHEDULE - 30 SEPTEMBER 2014 | ||||
ASSET | LOCATION | JOINT OPERATIONS PARTIES | EQUITY % | OPERATOR |
Cambay Field PSC | Cambay/ Gujarat/ India | Oilex Ltd | 30.0 | Oilex Ltd |
Oilex NL Holdings (India) Limited | 15.0 | |||
Gujarat State Petroleum Corp. Ltd | 55.0 | |||
Bhandut Field PSC | Cambay/ Gujarat/ India | Oilex NL Holdings (India) Limited | 40.0 | Oilex NL Holdings (India) Limited |
Gujarat State Petroleum Corp. Ltd | 60.0 | |||
Sabarmati Field PSC | Cambay/ Gujarat/ India | Oilex NL Holdings (India) Limited | 40.0 | Oilex NL Holdings (India) Limited |
Gujarat State Petroleum Corp. Ltd | 60.0 | |||
West Kampar PSC | Central Sumatra/ Indonesia | Oilex (West Kampar) Limited | 67.5 (1) | PT Sumatera Persada Energi |
PT Sumatera Persada Energi | 32.5 | |||
JPDA 06-103 PSC | Flamingo/ Joint Petroleum Development Area/ Timor-Leste & Australia | Oilex (JPDA 06-103) Ltd | 10.0 | Oilex (JPDA 06-103) Ltd |
Japan Energy E&P JPDA Pty Ltd | 15.0 | |||
GSPC (JPDA) Limited | 20.0 | |||
Videocon JPDA 06-103 Limited | 20.0 | |||
Bharat PetroResources JPDA Ltd
| 20.0 | |||
Pan Pacific Petroleum (JPDA 06-103) Pty Ltd | 15.0 | |||
SPA 17 AO (formerly STP-SPA-0055) | Canning/Western Australia | Admiral Oil Pty | 100.0 | Admiral Oil Pty Ltd |
STP-EPA-0106 | Canning/Western Australia | Admiral Oil and Gas (106) Pty Ltd | 100.0 | Admiral Oil and Gas (106) Pty Ltd |
STP-EPA-0107 | Canning/Western Australia | Admiral Oil and Gas (107) Pty Ltd | 100.0 | Admiral Oil and Gas (107) Pty Ltd |
(1) Oilex (West Kampar) Limited is entitled to have assigned an additional 22.5% to its holding through the exercise of its rights under a Power of Attorney granted by SPE following the failure of SPE to repay funds due. The assignment has been provided to BPMigas (now SKK Migas) but has not yet been approved or rejected. If Oilex is paid the funds due it will not pursue this assignment.
LIST OF ABBREVIATIONS AND DEFINITIONS
MMBO | Million standard barrels of oil or condensate |
MSCFD | Thousand standard cubic feet (of gas) per day |
MMSCFD | Million standard cubic feet (of gas) per day |
BBO | Billion standard barrels of oil or condensate |
BCF | Billion Cubic Feet of gas at standard temperature and pressure conditions |
Discovered in place volume | Is that quantity of petroleum that is estimated, as of a given date, to be contained in known accumulations prior to production |
Undiscovered in place volume | Is that quantity of petroleum estimated, as of a given date, to be contained within accumulations yet to be discovered |
PSC | Production Sharing Contract |
Prospective Resources | Those quantities of petroleum which are estimated, as of a given date, to be potentially recoverable from undiscovered accumulations by application of future development projects. Prospective Resources have both an associated chance of discovery and a chance of development. |
Contingent Resources | Those quantities of petroleum estimated, as of a given date, to be potentially recoverable from known accumulations, but the applied project(s) are not yet considered mature enough for commercial development due to one or more contingencies. Contingent Resources may include, for example, projects for which there are currently no viable markets, or where commercial recovery is dependent on technology under development, or where evaluation of the accumulation is insufficient to clearly assess commerciality. |
Reserves | Reserves are those quantities of petroleum anticipated to be commercially recoverable by application of development projects to known accumulations from a given date forward under defined conditions. Reserves must satisfy four criteria: they must be discovered, recoverable, commercial, and remaining (as of the evaluation date) based on the development project(s) applied. |
For further information, please contact:
Oilex Ltd Ron Miller, Managing Director Email: [email protected] Tel: +61 8 9485 3200 Australia | Strand Hanson Limited Nominated Adviser and AIM Broker Rory Murphy/Ritchie Balmer Email: [email protected] Tel: +44 207 409 3494 UK
| Tavistock Communications Ed Portman Email: [email protected] Tel: +44 207 920 3150 UK |
Qualified Petroleum Reserves and Resources Evaluator statement
Pursuant to the requirements of Chapter 5 of the ASX Listing Rules, the information in this report relating to petroleum reserves and resources is based on and fairly represents information and supporting documentation prepared by or under the supervision of Mr. Peter Bekkers, Chief Geoscientist employed by Oilex Ltd. Mr. Bekkers has over 17 years' experience in petroleum geology and is a member of the Society of Petroleum Engineers and AAPG. Mr. Bekkers meets the requirements of a qualified petroleum reserve and resource evaluator under Chapter 5 of the ASX Listing Rules and consents to the inclusion of this information in this report in the form and context in which it appears. Mr. Bekkers also meets the requirements of a qualified person under the AIM Note for Mining, Oil and Gas Companies and consents to the inclusion of this information in this report in the form and context in which it appears.
Rule 5.3
Appendix 5B
Mining exploration entity quarterly report
Introduced 1/07/96. Origin: Appendix 8. Amended 1/07/97, 1/07/98, 30/09/01, 1/06/10, 17/12/10, 01/05/13.
Name of entity
OILEX LTD
ABN | Quarter ended ("current quarter") | |
50 078 652 632 | 30 September 2014 |
1 | Consolidated statement of cash flows | ||||
| Current quarter $A'000 | Year to date (3 months) $A'000 | |||
Cash flows related to operating activities | |||||
1.1 | Receipts from product sales and related debtors | 78 | 78 | ||
1.2 | Payments for (a) exploration and evaluation | (4,548) | (4,548) | ||
(b) development | - | - | |||
(c) production | (218) | (218) | |||
(d) administration (net) | (772) | (772) | |||
1.3 | Dividends received | - | - | ||
1.4 | Interest and other items of a similar nature received | 25 | 25 | ||
1.5 | Interest and other costs of finance paid | - | - | ||
1.6 | Income taxes paid | - | - | ||
1.7 | Other (provide details if material) | - | - | ||
Net Operating Cash Flows | (5,435) | (5,435) | |||
Cash flows related to investing activities | |||||
1.8 | Payment for purchases of: (a) prospects (b) equity investments (c) other fixed assets |
- - (7) |
- - (7) | ||
1.9 | Proceeds from sale of: (a) prospects (refer 2.2 below) (b) equity investments (c) other fixed assets |
- - (1) |
- - (1) | ||
1.10 | Loans to other entities | (2) | (2) | ||
1.11 | Loans repaid by other entities | - | - | ||
1.12 | Other (provide details if material) | - | - | ||
Net investing cash flows | (10) | (10) | |||
1.13 | Total operating and investing cash flows (carried forward) | (5,445) | (5,445) | ||
Current quarter $A'000 | Year to date (3 months) $A'000 | ||
1.13 | Total operating and investing cash flows (brought forward) | (5,445) | (5,445) |
Cash flows related to financing activities | |||
1.14 | Proceeds from issues of shares, options, etc (net) | 3,089 | 3,089 |
1.15 | Proceeds from sale of forfeited shares | - | - |
1.16 | Proceeds from borrowings (net) | - | - |
1.17 | Repayment of borrowings | - | - |
1.18 | Dividends paid | - | - |
1.19 | Other (provide details if material) | - | - |
Net financing cash flows | 3,089 | 3,089 | |
Net increase (decrease) in cash held | (2,356) | (2,356) | |
1.20 | Cash at beginning of quarter/year to date | 7,456 | 7,456 |
1.21 | Exchange rate adjustments to item 1.20 | 49 | 49 |
1.22 | Cash at end of quarter | 5,149 | 5,149 |
Payments to directors of the entity and associates of the directors Payments to related entities of the entity and associates of the related entities | Current quarter $A'000 | |
1.23 | Aggregate amount of payments to the parties included in item 1.2 | 182 |
1.24 | Aggregate amount of loans to the parties included in item 1.10 | |
1.25 | Explanation necessary for an understanding of the transactions | |
2 | Non-cash financing and investing activities |
2.1 | Details of financing and investing transactions which have had a material effect on consolidated assets and liabilities but did not involve cash flows |
N/A | |
2.2 | Details of outlays made by other entities to establish or increase their share in projects in which the reporting entity has an interest |
N/A |
3 | Financing facilities available Add notes as necessary for an understanding of the position. | Amount available $A'000 | Amount used $A'000 |
3.1 | Loan facilities | - | - |
3.2 | Credit standby arrangements | - | - |
4 | Estimated cash outflows for next quarter | $A'000 |
4.1 | Exploration and evaluation | 1,564 |
4.2 | Development | 329 |
4.3 | Production | 334 |
4.4 | Administration | 700 |
Total | 2,927 |
5 | Reconciliation of cash | ||
Reconciliation of cash at the end of the quarter (as shown in the consolidated statement of cash flows) to the related items in the accounts is as follows. | Current quarter $A'000 | Previous quarter $A'000 | |
5.1 | Cash on hand and at bank | 3,058 | 6,079 |
5.2 | Deposits at call | 2,091 | 1,377 |
5.3 | Bank overdraft | - | - |
5.4 | Other (provide details) | - | - |
Total: cash at end of quarter (item 1.22) | 5,149 | 7,456 | |
6 | Changes in interests in mining tenements and petroleum tenements | ||||
Tenement reference | Nature of interest (note (2)) | Interest at beginning of quarter | Interest at end of quarter | ||
6.1 | Interests in mining tenements and petroleum tenements relinquished, reduced or lapsed | Refer to Permit/Asset Schedule in Quarterly Report | |||
6.2 | Interests in mining tenements and petroleum tenements acquired or increased | Refer to Permit/Asset Schedule in Quarterly Report | |||
7 | Issued and quoted securities at end of current quarter Description includes rate of interest and any redemption or conversion rights together with prices and dates. | ||||
Total number | Number quoted | Issue price per security | Amount paid up per security | ||
7.1 | Preference +securities (description) | - | - | - | - |
7.2 | Changes during quarter | ||||
(a) Increases through issues | - | - | - | - | |
(b) Decreases through returns of capital, buy-backs, redemptions | - | - | - | - | |
7.3 | +Ordinary securities | 616,927,809 | 616,927,809 | Various | - |
7.4 | Changes during quarter | ||||
(a) Increases through rights issue or placement |
18,600,000 |
18,600,000 |
$0.11 | - - | |
(b) Increases through employee performance rights issues | - | - | - | - | |
(c) Increases through issues (options exercised) | 7,293,020 | 7,293,020 | $0.15 | - | |
(d) Decreases through returns of capital, buy-backs | - | - | - | - | |
Total number | Number quoted | Issue price per security | Amount paid up per security | |||
7.5 | +Convertible debt securities (description) | - | - | - | - | |
7.6 | Changes during quarter (a) Increases through issues | - | - | - | - | |
(b) Decreases through securities matured, converted | - | - | - | - | ||
7.7 | Options | Exercise price | Expiry date | |||
(description and conversion factor) | ||||||
188,599,091 | 188,599,091 | $0.15 | 07/09/2015 | |||
8,737,500 | - | $0.37 | 10/11/2014 | |||
75,000 | - | $0.63 | 01/08/2015 | |||
3,000,000 | - | $0.15 | 17/12/2015 | |||
1,000,000 | - | $0.15 | 30/01/2016 | |||
5,000,000 | - | $0.25 | 08/03/2016 | |||
500,000 | - | $0.15 | 27/06/2016 | |||
2,000,000 | - | $0.15 | 04/11/2016 | |||
2,000,000 | - | $0.15 | 11/11/2016 | |||
3,000,000 | - | $0.15 | 05/12/2016 | |||
1,000,000 | - | $0.25 | 30/01/2017 | |||
250,000 | - | $0.15 | 10/03/2017 | |||
500,000 | - | $0.25 | 27/06/2017 | |||
1,325,000 | - | $0.25 | 05/08/2017 | |||
1,500,000 | - | $0.25 | 25/08/2017 | |||
2,000,000 | - | $0.25 | 11/11/2017 | |||
250,000 | - | $0.25 | 10/03/2018 | |||
1,325,000 | - | $0.35 | 05/08/2018 | |||
4,000,000 | - | $0.15 | 29/04/2019 | |||
1,500,000 | - | $0.35 | 25/08/2019 | |||
Total | 227,561,591 | 188,599,091 | ||||
7.8 | Issued during quarter | 1,325,000 1,500,000 1,325,000 1,500,000 | - - - - | $0.25 $0.25 $0.35 $0.35 | 05/08/2017 25/08/2017 05/08/2018 25/08/2019 | |
7.9 | Exercised during quarter | 7,293,020 | 7,293,020 | $015 | 07/09/2015 | |
7.10 | Expired during quarter | 4,150,000 | - | $0.30 | 01/07/2014 | |
7.11 | Debentures (totals only) | Nil | Nil | |||
7.12 | Unsecured notes (totals only) | Nil | Nil | |||
Compliance statement
1 This statement has been prepared under accounting policies which comply with accounting standards as defined in the Corporations Act or other standards acceptable to ASX.
2 This statement does give a true and fair view of the matters disclosed.
Sign here: Date: 31 October 2014
CFO & Company Secretary
Print name: Chris Bath
Related Shares:
OEX.L