2nd Apr 2007 07:00
OILEX LTD
2 April 2007
Centralised Company Announcements Office
Australian Stock Exchange Limited
10th Floor20 Bond StreetSydney NSW 2000Dear Sir,
subject: WEEKLY OPERATIONS UPDATE -TESTING PROGRAMME, 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.
Pressure and fluid data were acquired in a test programme of the deeper Eocene EP IV reservoir conducted in February 2007. Production from this zone has continued while planning was carried out and approvals obtained for the OS II test programme.
Operations - Since last week's report, the John Energy 50MT work-over rig has been set up on location, surface equipment installed and tested, oil production from the EP IV interval terminated and activities to condition the mud system and clean the well bore for safe operations are almost complete.
Operations Forecast - A packer will be set to isolate the deeper, productive EP IV interval, the test string run and the interval 1514-1520 metres (measured depth) perforated early this week. Reservoir fluids will then be allowed to flow into a surface separator while the production potential and fluid properties of the OS II reservoir are assessed.
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)
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
OILEX LTDRelated Shares:
OEX.L