10th Apr 2007 07:00
OILEX LTD10 April 2007AIM- LONDON STOCK EXCHANGEDear Sir,
Subject: WEEKLY OPERATIONS UPDATE-TESTING PROGRAM, CAMBAY-72, CAMBAY FIELD, INDIA
Oilex Ltd, Operator for the Cambay Field Joint Venture, is pleased to advise of progress on the re-entry and test programme for the Oligocene OS II reservoir in the Cambay-72 well, 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.
Operations - Since last week's report, the Cambay-72 mud system has been converted to inhibited completion water, the test assembly run, surface equipment connected, correlation logs run and the well perforated over the intervals 1515.6-1517.6 and 1520-1521.6 metres (measured depth). Attempts to set a packer to isolate the well annulus from the production tubing were unsuccessful and this caused some delays to the program.
Following the perforation of the OS II test interval, Cambay-72 flowed oil, water and natural gas at variable, unstabilised rates until the test was prematurely terminated. An average flow rate calculated from a period of actual flow and volume produced was about 200 barrels per day of which we estimate about 60% is oil and the balance 40% is completion water. The indications are that no formation water was being produced, oil volume was increasing with time and that the flow was restricted by sand incursion into the well bore.
The test was aborted on 9 April because of sand fill in the tubing to a height of about 100 metres that caused plugging of down-hole equipment and erratic flow. The sand has now been reverse circulated from the well, and the down hole pressure gauges retrieved.
Operations Forecast - Resumption of the flow test is planned when sand control equipment can be acquired and installed so that the stabilised oil production potential of this interval can be established and additional data obtained for analysis. In the meantime the rig will move to another Oilex-operated field to install a sucker rod pump at the Sabarmati-1 well.
Comment - While there have been operational difficulties which required some compromise to the test program, results to date indicate that the OS II reservoir is capable of producing at significant, commercial rates and that the oil rim with overlying gas cap fluid model interpreted in this part of the Cambay field is valid.
Unconsolidated sandstone usually indicates very good porosity and permeability. Sand incursion can be controlled by placing sand screens across the perforations and these devices will be installed in all future tests and completions at the OS II reservoir level.
Additional data will be acquired to determine recoverable oil reserves for the OS II reservoiras part of a 9 month, Phase 2 drilling program at Cambay Field
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 28years 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:
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