29th Oct 2007 07:01
HIGHLIGHTS * Pendalian-3 appraisal well spudded on 28 September in West Kampar PSC, Central Sumatra.
* Long term drilling program in India commenced in September with drilling of
Bhandut-2Z appraisal well in Bhandut Field. * Cambay phase 2 drilling program is scheduled to start in November. * A drilling contract was awarded for a program in Block 56 Oman starting with 3 wells in November 2007 * Acquisition of onshore 2D seismic survey in Oman is about 70% complete. * Retain cash resources on hand of approximately A$63.9 million. CORPORATE DETAILS Board of Directors Principal & Registered Office Max D.J. Cozijn Non-Executive Chairman Level 3, 50 Kings Park Road Bruce McCarthy Managing Director West Perth WA 6005, Australia
Ray Barnes Technical Director Telephone: +61 8 9485 3200
L. L. Bhandari Non-Executive Director Facsimile: +61 8 9485 3290
Capital Structure Email: [email protected] Ordinary Shares 129,633,885 Website: www.oilex.com.au Unlisted Options 31,875,100 Share Registry Unlisted Performance Rights 1,226,000 Security Transfer Registrars Pty Ltd Stock Exchange Listing 770 Canning Highway
Australian Securities Exchange
Applecross WA 6153, Australia ASX Code: OEX Telephone: +61 8 9315 2333
AIM Market of London Stock Exchange
Facsimile: +61 8 9315 2233 AIM Code: OEX Email:
NOTE : For all maps and diagrams referred to in the body of this report, please refer to the Oilex Website.
OPERATIONS REVIEW INDIA CAMBAY FIELD, Gujarat 6 wells to be (Oilex Operator - 45%) drilled at Cambay commencing November. A 9 month continuous drilling program with the first 6 firm wells is anticipated to start in November 2007. A combination of re-entry, sidetrack and new wells has been agreed by the Joint Venture with the primary objective of acquiring new reservoir and fluid data for the Oligocene and Eocene hydrocarbon zones that have been identified from the field's production and well testing history. Each reservoir compartment at the main objective levels will be tested by at least one well. Along with data from existing wells, this information will be used to determine oil and gas reserves in the major compartments of the field and will form the basis for planning the re-development of the Cambay field. The first wells in Cambay, to follow the Bhandut-2Z well, are located to acquire modern fluid, pressure, core and wireline data in areas where data quality is poor, particularly in the main basin where gas has been tested and produced from old wells. The 2 wells that were drilled late last year on the Western High Area were located without the benefit of the 3D seismic and they tested oil from 2 zones. At present there are no modern data from the gas-bearing horizons and in order to assess the development potential of the gas resource, the primary objective of the first wells at Cambay will be to acquire the data necessary for confirming reserves and to test the seismic anomalies that are interpreted to be direct indicators of gas. Sabarmati Field, Gujarat (Oilex Operator - 40%) Sabarmati-1 is the sole producing well in the Sabarmati Production Sharing Contract area. No further work has been carried out in the past quarter. Bhandut Field, Gujarat (Oilex Operator - 40%)
Preparations for Evaluation of the Bhandut Field has commenced with the
drilling of drilling of Bhandut-2Z, a deviated well that is being drilledBhandut-2Z from the surface location of the original Bhandut-2 well. Thecommenced in surface location is near to the inferred oil-water contact atSeptember the level of the G sand and the intent is to deviate the well to the northwest away from the original bore hole within the constraint that the angle of deviation is limited by the capability of the rig. The crest of the structure at the G sand is about 750m to the northwest of the Bhandut-2 location and will be the optimal site of drilling later in the development program for Bhandut field. All of the wells drilled on Bhandut to date are located on the southeastern flank of the structural closure at this stratigraphic level. Deeper reservoir objectives identified at Bhandut will be drilled from newly built locations when approvals are received later in the development program. Those objectives are not proposed to be drilled by Bhandut-2Z, the location of which was constrained by the availability of existing, useable drilling pads. The main objectives of Bhandut-2Z are to acquire modern velocity, core, wireline, pressure and fluid composition data from the main Miocene reservoir unit ("G" Sand). The well is located on the southeastern flank of the field, close to the limit of structural closure that has been mapped from the 3D seismic data set. In the event that the oil-bearing reservoir is confirmed, the well will be completed for production from the G sand. The field is located near to the Lakshmi, Gauri and Hazira Fields that are producing gas and oil from reservoir intervals similar to those intersected in the Bhandut wells. The Bhandut Field has produced about 200,000 barrels of oil since 1993. OMAN Block 56 South Oman (Oilex Operator - 25%) Extensive 2D s A 2D seismic survey comprising 1,080 line km in the eismic survey southwestern part of Block 56 commenced in August and is due commenced in to be completed about the end of October. Reprocessing August existing seismic data is continuing and results have been incorporated into the existing data set. There is a Contract awarded significant area covered by 3D and dense 2D seismic surveys for drilling 3 and, after mapping of those data, a number of locations for wells planned to the first phase of drilling have been selected on the
commence in existing data base. November2007 Hydrocarbon potential has been recognized for targets ranging from the Cambrian Buah formation to the Cretaceous Wasia group in areas where depth of burial is sufficient to mitigate the biodegradation of oil at the shallower levels. The possible presence of a thicker sedimentary section in the block implying a more extensive distribution of the Ara Salt unit into Block 56 raises the possibility of salt related structures similar to those producing to the west in the main salt basin. Three well locations (3, 4 and 7, see map below) have been approved for drilling and civil engineering work has commenced on the drilling pads. Two of the first 3 wells are located in the western part of the block on structures that appear to be of similar form to producing fields immediately to the west in the South Oman Salt Basin. The third well will be drilled in a remote area along a prominent geological trend that has not been drilled previously. These locations were selected using the existing and reprocessed 2D and 3D seismic data and are not contingent on the interpretation of the 1000 km seismic acquisition program underway in the block. A drilling contract has been awarded to Abraj - Energy Holdings, an Omani company for a drilling program initially of 3 wells that is expected to start in November. The contract is for 1 year with 2 optional extensions for 6 months each. Block 56 well locations, Top Naith Fm depth map Indonesia West Kampar PSC (Oilex - 45%) Drilling of The first appraisal well on the Pendalian structure spudded Pendalian-3 on 28 September. Pendalian-3 will appraise the oil field commences in West discovered in 1993 by the Pendalian-1 well, a cored slim holeKampar PSC. which encountered a number of oil zones at depths ranging from 250 metres to 500 metres. Two shallow zones in the Potential Sihapas Sandstone flowed oil from cased hole tests in
oil-bearing zones Pendalian-1, one at 530 barrels per day. The testing will be tested on program is planned to commence with deeper zones which appearcompletion of to be less well developed and were not tested in the earlier drilling wells. Successively shallower zones, including the productive reservoir confirmed previously in Pendalian-1 will be tested towards the end of the program. If commercial productivity is confirmed by the cased hole testing program planned in Pendalian-3, the West Kampar Joint Venture plans to acquire a 3D seismic survey over the Pendalian Field and a number of satellite structures and to accelerate development. Shallow, low cost wells and the proximity to infrastructure are attractive incentives for the rapid development of the field. It is intended that early cash flow generated by Pendalian production would be applied to the exploration of highly prospective trends that have been recognized on the block. AUSTRALIA EPP 27 - Otway basin offshore SOUTH AUSTRALIA (Oilex Operator - 20%) Permit term Eight prospects in water depths of 70-105 metres have been extended to mapped in the southeastern sector of the block and a
February 2008 preferred drilling location has been selected on a prospect
that may contain 80 mmstboip (mean estimate). Site surveys Negotiations have been acquired at two locations in preparation for under way for drilling. well slot Oilex, on behalf of the EPP 27 Joint Venture, is pursuing a slot on an appropriate rig to drill a well in EPP 27 at the earliest opportunity in 2008/2009. As the current term of the exploration permit expires in February 2008 permit
extension/
renewal approval is also being pursued with the relevant authorities.. WA-388-P Carnarvon Basin, Offshore Western Australia (Oilex Operator - 20%) Seismic Oilex, on behalf of the JV, is in the process of finalising aacquisition to contract to conduct a 3D seismic survey of about 1,100km2. start late 2007 Interpretation of the reprocessed 2D and existing third partyor early 2008 seismic data continued. The block is located to the north of the Goodwyn / North Rankin gas fields trend and to the northeast of the Jansz-Io gas discoveries in the Exmouth Sub-basin. ATP 548P INLAND OIL JV (Oilex - 11.35%) Oilex issued a notice to the other Parties in the Joint Venture regarding the sale of Oilex's interest in the permit to Bow Energy. One of the Parties has exercised its right of pre-emption and the sale documents are being finalised.
Joint Petroleum JPDA 06-103, FLAMINGO BASIN OFFSHORE Joint petroleum Development Area development area Between Timor-Leste And (Oilex Operator - 25%)
Australia Five companies tendered for the Maura 3D seismic survey and the contract was awarded to Wavefield Inseis to secure the vessel "Geowave Champion". The survey will cover an area of 1657 sq km and is expected to commence late 2007 or early 2008, dependent on the vessel's current work commitments. With the purchase of modern third party 3D data and the addition of the new 3D data to the existing data set, the JV will have a comprehensive seismic data base over the entire prospective area of the block by mid 2008. Corporate Community Development - Timor-Leste Rural Health project Oilex's business objective is to produce exceptional results for the Company and all stakeholders. A fundamental component of our strategy is to develop and maintain excellent working relationships with the communities where we work and to maintain a high level of corporate responsibility. With that in mind, Oilex has established a working alliance with Australian Aid International ("AAI") for the provision of health care and training of health care workers that is needed in rural communities of the young sovereign state. That arrangement has been operating since March 2007 with outstanding success. The objective of the program is to implement health care training and support operations in pre-determined areas of need in cooperation with the Ministry of Health, local health authorities and communities. AAI is an Australian-based, independent humanitarian aid organisation that is non-profit and non-sectarian. AAI has made measurable and sustainable improvements to the lives of displaced people around the world, providing emergency medical assistance and implementing rural health programs that focus on building local capacity. RATIONALE FOR THE PROJECT Timor-Leste has one of the highest maternal mortality rates in the Southeast Asian region, with up to 860 pregnant women dying for every 100,000 births. The infant mortality rate is also unacceptably high, with high prevalence of low infant birth weight, peri-natal infection and an acute lack of skilled assistance at delivery. There also exists in the population generally a high level of mortality and morbidity caused by easily preventable and treatable diseases. Project Objectives * Improve Health Information Systems. * Provide maternal and child healthcare * Provide basic emergency care * Provide support in the form of outreach clinics This program will have both immediate and long term impact on the health system and its intended beneficiaries. It will be fully co-ordinated by the Ministry of Health and World Health Organization and support their respective objectives. Net cash Company Structure
resources of A$
63.9million The Company presently has 129,633,885 shares on issue. These shares are traded on the ASX in Australia and on the AIM market of the London Stock Exchange under the code: OEX. Oilex also has 31,875,100 unlisted options on issue, the majority of these being held by executive staff and 1,226,000 Employee Performance Rights. At 30 September, 2007 the Company retained net cash resources of approximately A$63.9 million.
Oilex regularly updates its website at www.oilex.com.au
For and on behalf of the Board
Dr B. H. McCarthyManaging Director29 October 2007The 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. The estimates of hydrocarbons in place werereviewed by Ray Barnes, the Technical Director of Oilex Ltd who has over 35years experience in petroleum geology and is a member of the AAPG. Mr Barnesreviewed this announcement and consents to the inclusion of the estimatedhydrocarbons in place in the form and context in which they appear. Theresource estimates contained in this report are in accordance with the standarddefinitions set out by the Society of Petroleum Engineers, further informationon which is available at www.spe.org.
Oilex's nominated advisor in relation to the AIM market is RFC Corporate Finance Ltd, contact: Stuart Laing, [email protected]
Permit Schedule PERMIT BASIN / STATE / JOINT VENTURE PARTIES EQUITY % OPERATOR COUNTRY Oilex Ltd 30.00
Cambay Field Cambay / Gujarat Oilex Ltd
/ India Oilex NL Holdings 15.00 (India) Limited Gujarat State Petroleum 55.00 Corp. Ltd Oilex NL Holdings 40.00 Oilex NL (India) Limited HoldingsBhandut Cambay / Gujarat (India) LimitedField / India Gujarat State Petroleum 60.00 Corp. Ltd Oilex NL Holdings 40.00 Oilex NL (India) Limited HoldingsSabarmati Cambay / Gujarat (India) LimitedField / India Gujarat State Petroleum 60.00 Corp. Ltd Oilex Oman Limited 25.00 Block 56 South Oman / Oman Oilex Oman Limited GAIL (India) Limited 25.00 Videocon Industries Ltd 25.00 Bharat Petroleum 12.50 Corporation Ltd Hindustan Petroleum 12.50 Corp Ltd Oilex (West Kampar) 45.00 LimitedWest Kampar Central Sumatra PT SumateraBlock / Sumatra/ Persada Energi Indonesia PT Sumatera Persada 55.00 Energi Oilex Ltd 20.00 EPP27 Otway / SA / Australia Oilex Ltd Videocon Industries Ltd 20.00 Gujarat State Petroleum 20.00 Corp. Ltd Great Artesian Oil & 40.00 Gas Limited Oilex (JPDA 06-103) Ltd 25.00 Flamingo / Joint Petroleum
JPDA 06-103
Development Area/ Oilex (JPDA 06-103) Ltd Timor-Leste & Australia GSPC (JPDA) Limited 25.00 Global Energy Inc. 25.00 Bharat Petroresources 25.00 JPDA Ltd Oilex Ltd 20.00 WA-388-P Carnarvon / WA / Australia Oilex Ltd Gujarat State Petroleum 20.00 Corp Ltd Videocon Industries Ltd 20.00 Bharat Petroleum 20.00 Corporation Ltd Hindustan Petroleum 20.00 Corp Ltd Oilex Ltd 11.35 Cooper-Eromanga Basin / QLD /ATP548P Australia IOR Exploration Pty Ltd Netscald Pty Ltd 20.00 Moroil Pty Ltd 16.94 IOR Exploration Pty Ltd 51.71 Listing Rule 5.3 Appendix 5B Mining exploration entity quarterly report
Introduced 1/7/96. Origin: Appendix 8. Amended 1/7/97, 1/7/98, 30/9/2001.
Name of entity OILEX LTD ABN Quarter ended ("current quarter") 50 078 652 632 30 SEPTEMBER 2007
Consolidated statement of cash flows
Cash flows related to operating activities Current quarter Year to date $A'000 (3 months) $A'000 1.1 Receipts from product sales and related - - debtors 1.2 Payments for (a) exploration and (1,590) (1,590) evaluation - - (b) development (709) (709) (c) production (1,101) (1,101)
(d) administration (net) 1.3 Dividends received - - 1.4 Interest and other items of a similar 796 796 nature received 1.5 Interest and other costs of finance paid (255) (255) 1.6 Income taxes paid - - 1.7 Other (provide details if material) - - Net Operating Cash Flows (2,859)
(2,859)
Cash flows related to investing activities 1.8 Payment for purchases of: (a) prospects - - (b) equity investments - - (c) other fixed assets (160) (160) 1.9 Proceeds from sale of: (a) prospects -
- (b )equity investments - - (c) other fixed assets - - 1.10 Loans to other entities - -
1.11 Loans repaid by other entities -
-
1.12 Other (provide details if material) -
-
Net investing cash flows (160)
(160)
1.13 Total operating and investing cash flows (3,019) (3,019)
(carried forward) 1.13 Total operating and investing cash (3,019) (3,019) flows (brought forward) Cash flows related to financing activities 1.14 Proceeds from issues of shares, 113 113 options, etc 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 113 113 Net increase (decrease) in cash (2,906) (2,906) held 1.20 Cash at beginning of quarter/year 66,993
66,993 to date 1.21 Exchange rate adjustments to item (207) (207) 1.20 1.22 Cash at end of quarter 63,880 63,880
Payments to directors of the entity and associates of the directors
Payments to related entities of the entity and associates of the relatedentities Current quarter $A'000 1.23 Aggregate amount of payments to the parties 205 included in item 1.2 1.24 Aggregate amount of loans to the parties included - in item 1.10 1.25 Explanation necessary for an understanding of the transactions -
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
Financing facilities available
Add notes as necessary for an understanding of the position.
Amount available Amount used $A'000 $A'000 3.1 Loan facilities 10,000 10,000 3.2 Credit standby arrangements - -
Estimated cash outflows for next quarter
$A'000 4.1 Exploration and evaluation
8,000 4.2 Development - Total 8,000Reconciliation of cash
Reconciliation of cash at the end of the Current quarter Previous quarter
quarter (as shown in the consolidated statement of cash flows) to the related $A'000 $A'000 items in the accounts is as follows. 5.1 Cash on hand and at bank 3,227 2,490 5.2 Deposits at call 60,653 64,503 5.3 Bank overdraft - - 5.4 Other (provide details) - - Total: cash at end of quarter 63,880
66,993
(item 1.22)
Changes in interests in mining tenements
Tenement Nature of interest Interest Interest reference at at end of (note (2)) beginning quarter of quarter 6.1 Interests in mining - Refer to Permit - - tenements Schedule in Quarterly relinquished, Report reduced or lapsed 6.2 Interests in mining Refer to Permit tenements acquired Schedule in Quarterly or increased Report
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 Issue price Amount paid quoted per security 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 129,633,885 129,633,885 Various - 7.4 Changes during quarter 250,000 250,000 $0.45 - (a) Increases through - - - - issues (b) Decreases through returns of capital, buy-backs 7.5 +Convertible debt - - - - securities (description) 7.6 Changes during quarter - - - - (a) Increases through issues (b) Decreases through securities matured, converted 7.7 Options 2,200,000 - Exercise Expiry date price (description and 500,000 - 28/02/2008 conversion $0.20 3,000,000 - 31/12/2009 factor) $1.00 1,000,100 - 31/12/2009 $1.50 2,000,000 - 07/12/2008 $0.50 3,250,000 - 14/12/2008 $0.40 4,250,000 - 14/12/2008 $0.50 1,000,000 - 14/12/2008 $0.80 4,500,000 - 16/02/2009 $0.50 775,000 - 31/03/2010 $0.50 775,000 - 31/07/2009 $0.50 775,000 - 31/07/2009 $0.65 500,000 - 31/07/2010 $0.90 500,000 - 31/10/2009 $1.50 500,000 - 31/10/2009 $1.75 500,000 - 31/10/2010 $2.00 450,000 - 31/01/2010 $1.40 450,000 - 31/01/2010 $2.00 2,500,000 - 31/01/2011 $2.50 300,000 - 31/03/2011 $2.00 300,000 - 31/01/2010 $1.75 300,000 - 31/01/2011 $2.25 500,000 - 31/03/2012 $2.75 350,000 - 30/09/2011 $1.57 350,000 - 30/04/2010 $1.60 350,000 - 30/04/2010 $2.10 30/04/2011 $2.70
Issued and quoted securities at end of current quarter (cont'd)
Description includes rate of interest and any redemption or conversion rights together with prices and dates.
Total number Number Issue price Amount paid quoted per security up per security 2006 Performance Rights 279,000 Tranche 1 expire 1/07/2011 304,000 Tranche 2 expire 1/07/2011 299,000 Tranche 3 expire 1/07/2011 2007 Performance Rights 125,000 Tranche 1 expire 1/07/2012 110,000 Tranche 2 expire 1/07/2012 109,000 Tranche 3 expire 1/07/2012 7.8 Issued during 500,000 - Exercise Expiry date quarter price 350,000 - 30/09/2011 $1.57 350,000 - 30/04/2010 $1.60 350,000 - 30/04/2010 $2.10 30/04/2011 $2.70 2007 Performance Rights 125,000 Tranche 1 expire 1/07/2012 110,000 Tranche 2 expire 1/07/2012 109,000 Tranche 3 expire 1/07/2012 7.9 Exercised during 250,000 - Exercise Expiry date quarter price 31/07/2009 $0.45 7.10 Expired during - - - - quarter 7.11 Debentures Nil Nil (totals only) 7.12 Unsecured notes Nil Nil (totals only) 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 doesgive a true and fair view of the matters disclosed.
Sign here:Date: 29 October 2007(Director/Company Secretary)Print name: Max D.J. Cozijn == == == == == Appendix 5B Mining exploration entity quarterly report Appendix 5B Mining exploration entity quarterly report
+ See chapter 19 for defined terms.
Appendix 5B Page 2 30/9/2001
14 QUARTERLY REPORT TO SHAREHOLDERS 30 september 2007 Leads at Aptian level
Proposed Maura 3D Seismic Survey 1657 km2
N 20 km Area of proposed 2008 Rose 3D seismic survey 1,181 km2 PERTH LOCATION WA 388 P NORTHWEST SHELF AUSTRALIA WA-388PEXMOUTHPLATEAU
Location West Kampar PSC, Central Sumatra, Indonesia
0 25km SCALE West KamparPSCSumatraDaludalu TrendPendalian TrendWest KamparPSC
OILEX LTDRelated Shares:
OEX.L