26th Feb 2007 07:00
26 February 2007
OILEX LTD
WEEKLY OPERATIONS UPDATE - CAMBAY FIELD TESTING
Oilex Ltd is pleased to advise of progress on the Cambay 72 re-entry and test programme in Cambay Field, 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 potential Oligocene oil reservoir from which good shows of oil were recorded while drilling and subsequently confirmed by wireline logs.
Indications of oil and gas in poorer quality reservoir were also recorded from the deeper, over-pressured Eocene EP IV interval and the opportunity has been taken to acquire pressure and fluid data from this unit in the current test programme, with the Oligocene potential oil reservoir to be tested in due course.
Operations - Flow testing of the fracture stimulated EP IV interval has continued during the past week with oil, gas and some water continuing to be produced at variable, unstabilised rates. At the end of the week, the rate was measured at 59 barrels of fluid (oil plus water) per day. The amount of water produced with the oil was 2.1 barrels giving an oil flow rate by deduction of 56.9 barrels, acknowledging that the volume of water is difficult to estimate because some of the fluid is in the form of an oil/water emulsion.
Operations Forecast - A recommendation to test the shallower Oligocene OS II interval has been prepared for the consideration of the Cambay joint venture. While production operations will continue at Cambay 72, weekly operations updates will resume when the OS II program is confirmed and equipment mobilised.
The results of the test are encouraging for the overall resource potential of the Eocene EPIV in the Cambay block. Cambay 72 intersected a facies that has relatively poor reservoir characteristics and flowed oil at promising rates after fracture stimulation. With the benefit of the 3D seismic mapping and the data from this well, we believe that mapping of amplitude anomalies indicates improved reservoir quality along a trend to the east of the western high area and therefore offers a number of attractive drilling targets in addition to other locations that have been identified on the western high.
Participants in the Cambay Production Sharing Contract are:
Joint Venture Party Participating Interest Oilex (Operator) 45% Gujarat State Petroleum Corporation Ltd 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 29 years experience in the oil and gas exploration and production industry and was reviewed by Ray Barnes, the Technical Director of Oilex Ltd who has over 35 years experience in oil and gas exploration and production industry and is a member of the AAPG.
OILEX LTDRelated Shares:
OEX.L