15th May 2006 07:00
OILEX NL15 May 2006Centralised Company Announcements OfficeAustralian Stock Exchange Limited10th Floor20 Bond StreetSydney NSW 2000Dear Sir,RE: REVISED RESOURCE ESTIMATE FOR CAMBAY FIELD WESTERN HIGH AND EASTERN FLANK, GUJARAT, INDIARESOURCE ASSESSMENT - OS II AND EP IV HORIZONFurther to our ASX Release of 21 April 2006, additional work has been completedto define with a higher level of confidence the characteristics of thereservoir and the fluid composition in potential reservoir units of the CambayField. This work has resulted in the following estimates for the Oligocene OSII sandstone (see Figure 1) and the Eocene EP IV sandstone (see Figure 2) onboth the Western High Trend and the eastern flank, which are two of the mainobjective horizons targeted in the phase-I drilling programme. No estimates forother potential reservoir units in the Miocene and Oligocene have beencompleted at this point. The estimates announced previously for the OligoceneOS II resource were only for the Western High Trend.Accounting for the possible presence of oil and /or gas on the eastern flankand the western high trend, the best revised estimate of potential resourceoriginal volume in place has now increased by 48% from 29 to43million barrelsof oil and by 409% from 34 to 173billion cubic feet of gas.Approximately 52 billion cubic feet of gas has been produced from the easternflank area. The range of volumes for oil are now 16 to 108 million barrelspotential original oil resource in place, with the range of volumes for gasfrom 105 to 432 billion cubic feet of gas resource originally in place.The first phase of drilling on Cambay Field is scheduled to commence in thesecond half of June, depending on the time taken to import additional equipmentnecessary for the drilling programme. As previously advised, on the basis ofdata analysed from existing wells, two wells have been optimally located tointersect the possible oil leg on the western high structure to acquire modernwireline and formation fluid and pressure information to aid in normalising theexisting data base. RESOURCE ORIGINAL VOLUME-IN-PLACE Low Estimate Best Estimate High Estimate OIL (million stock tank barrels) 16 43 108 GAS (billion cubic feet) 105 173 432 CONDENSATE (million stock tank 1.6 3.7 9.8barrels) Estimates of the potential hydrocarbonsoriginallyin place(100% basis) calculated for the Western High trendand eastern flank at the stratigraphiclevel OS II and EP IV sandstones.The Directorate General of Hydrocarbons (the regulatory authority of theRepublic of India) will be briefed on the outcome of the ongoing resourceassessment work. {refer ASX release on our website: wwww.oilex.com.au- for Diagrams) Figure 1 Depth Map of OS II Sandstone Reservoir Figure 2Depth Map of EP IV Sandstone ReservoirOilex is in the process of acquiring a 45% interest in Cambay and is Operatorfor the Joint Venture.For and on behalf of the Board,B. H. McCarthyManaging Directorcc: Directors: MC/GIJ/RGBThe information in this report has been compiled by the Managing Director ofOilex NL, Dr Bruce McCarthy B.Sc. Hons. PhD (Geology) who has over 26 yearsexperience in petroleum geology. The estimates of hydrocarbons in place wereprepared by Dr Paul RobinsonB.Sc. Hons. PhD (Geology), an independentconsultant to Oilex NL who has over 25 years experience in petroleum geologyand resources estimation and is a member of the AAPG and were reviewed by MrRay Barnes, the Technical Director of Oilex NL who has over 35 years experiencein petroleum geology and is a member of the AAPG. Dr Robinson and Mr Barnesboth reviewed this announcement and consent to the inclusion of the estimatedhydrocarbons in place in the form and context in which they appear.For further information, please contact:Bruce McCarthy, Managing Director Oilex NL Tel. +61 8 9226 5577 (WesternAustralia)Archie Berens, Director Pelham Public Relations Tel. +44 20 7743 6679 (UnitedKingdom) Level 3, 50 Kings Park Road West Perth WA 6005 Australia, PO Box 588 West Perth WA 6872 Australia Telephone: (+61 8) 9226 5577 Facsimile: (+61 8) 9226 2108 Email: [email protected] Web: www.oilex.com.au ENDOILEX NLRelated Shares:
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