19th Feb 2007 07:00
OILEX LTD19 February 2007
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. The Oligocene potential oil reservoir will be tested in due course.
Operations - During the past week, the perforated interval in the Eocene EP IV reservoir was successfully fracture stimulated and the well has been monitored while flowing to surface through a separator into a temporary oil storage tank. After the initial clean up period, the average oil flow rate is now approximately 70 barrels per day of 40 degree API oil with a gas to oil ratio of 260 standard cubic feet of gas per barrel of oil. Although the amount of water produced with the oil is now below 10% on average of the total fluid volume (oil plus water), a stabilised oil flow rate has not yet been established.
Operations Forecast - Monitoring of the production performance of the Cambay-72 well will continue until the flow rate is optimised at a stable, sustainable level. Evaluation of the commercial potential of the EP IV reservoir is continuing as the results of the test programme are integrated into the field mapping studies.
Oilex is very pleased with the results to date of the fracture stimulation of the EP IV in Cambay Field. The procedure has resulted in an increase in oil flow rate by approximately seven times the initial natural flow rate reported last week. This is a substantial increase in productivity and the information derived from the test will provide an excellent basis for the design of the drilling and completion programmes for future EP IV wells to achieve better rates of oil production.
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)
OILEX LTDRelated Shares:
OEX.L