16th Apr 2007 07:00
OILEX LTD16 April 2007AIMLONDON STOCK EXCHANGEDear Sir,
subject: WEEKLY OPERATIONS UPDATE-TESTING PROGRAMME, CAMBAY-72 and SABARMATI-1,
GUJARAT INDIA
Oilex Ltd is pleased to advise of progress on the re-entry and test programme for the Oligocene OS II reservoir in the Cambay-72 well and pump installation operations at Sabarmati-1, both onshore Gujarat, India.
Background - Cambay-72 was drilled in September 2006 and its location was selected from maps made prior to the acquisition of the 3D seismic survey. The primary target was the Oligocene OS II sandstone potential oil reservoir, estimated to have a gross thickness of 16 metres at this location. Sabarmati-1 is the sole producing well in the Sabarmati Production Sharing Contract area. This well was the subject of a fluid influx study in 2006 which indicated that crude oil production could be increased on a sustainable basis with the installation of an hydraulic sucker rod pump.
Operations - Since last week's report, the Cambay 72 well has been suspended pending import of specialist equipment. Surface and downhole pressure data have been submitted for analysis. The John-50-VI rig was released on April 13, 2007 for the move to the Sabarmati-1 workover operations and is currently rigging up on Sabarmati-1.
Operations Forecast - A sucker rod pump will be installed at Sabarmati-1 to facilitate production from this well. For Cambay-72, planning and procurement is continuing such that the John-50-VI workover rig can return to Cambay-72 following the operations at Sabarmati. Sand control and other essential equipment has been located to address the issues identified in the initial Cambay-72 test program and will be installed in the well such that the flow test can be continued and additional data obtained for analysis.
Participants in the Cambay Production Sharing Contract are:
Joint Venture Party Participating Interest Oilex (Operator) 45% Gujarat State Petroleum Corporation Ltd 55%
Participants in the Sabarmati Production Sharing Contract are:
Joint Venture Party Participating Interest Oilex (Operator) 40% Gujarat State Petroleum Corporation Ltd 60% 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 26 years 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.
2 ABN 50 078 652 632 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
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