7 Apr 2011 07:00
7 April 2011
Rig Mobilising for Cambay "Tight Reservoir" Well, India
Summary
* Rig mobilisation has started for Cambay-76H, a key "proof of concept" onshore well in Cambay Field, India * Cambay-76H well expected to spud in May 2011 * Drilling will be followed by multi stage fracture stimulation and a two month production testing phase * Completion of Independent Reserves Certification expected in May 2011
Cambay-76H Well Oilex Ltd advises that Black Pearl Drilling Services, the drilling contractor, has commenced the mobilisation of the "Black Pearl Rig 1" rig and related services, to drill the onshore Cambay-76H well in Gujarat, India on behalf of the Cambay Field Joint Venture.
The rig is mobilising from another location in Gujarat. Construction work at the Cambay-76H well site has been completed. Procurement of remaining drilling and fracture equipment and services for the well is substantially complete with mobilisation to site progressing.
The Cambay-76H well will evaluate the production potential of the extensive Eocene "tight" Y-zone reservoir that extends across the 161 km2 Cambay PSC contract area. The well, which includes a 610 metre lateral section, is expected to take approximately 35 days to drill and complete. A two month production test will then be conducted after an 8 stage fracture stimulation of the Y zone.
Independent Reserves Certification A data package for the Cambay Field "tight" reservoirs has been submitted to an Independent Reserves Certifier, Netherland Sewell Associates Inc ("NSAI") and technical discussions with the USA based Certifier have commenced. The Company has engaged NSAI specifically for their expertise in North American tight reservoirs, some of which have similarities to the Cambay Field "tight" reservoirs.
The completion of the NSAI Independent Reserves Certification process is expected to be concluded in May 2011.
The participating interests in the Cambay PSC are:
Joint Venture Party Participating Interest Oilex Ltd (Operator) 30% Oilex NL Holdings (India) Limited 15% Gujarat State Petroleum Corporation Ltd (GSPC) 55%
For further information, please contact:
Oilex Ltd +61 (0)8 9485 3200 (Western Australia)
Bruce McCarthy Managing Director oilex@oilex.com.au
Ben Clube Finance Director & Company Secretary oilex@oilex.com.au
Ambrian Partners Limited (Nominated Adviser and AIM Broker) +44 (0)20 7634 4856 (UK) Richard Swindells richard.swindells@ambrian.com
Read Corporate +61 (0)8 9388 1474 (Western Australia) Nicholas Read nicholas@readcorporate.com.au
Tavistock Communications +44 (0)20 79203150 (UK) Paul Youens pyouens@tavistock.co.uk +44 (0)7843 260 623 (UK) Ed Portman eportman@tavistock.co.uk +44 (0)7733 363 501 (UK)
Information in this report relating to hydrocarbon reserves or resources has been compiled by Mr Ray Barnes B.Sc. (Hons), the Technical Director of Oilex Ltd who has over 37 years of experience in petroleum geology and is a member of the AAPG. Mr Barnes consents to the inclusion of the information in this report relating to hydrocarbon reserves and resources in the form and context in which it appears. Resource estimates contained in this report are in accordance with the standard definitions set out by the Society of Petroleum Engineers, Petroleum Resources Management System, 2007.
About Oilex
Oilex Ltd is an AIM and ASX-listed oil and gas exploration and production company based in Perth, Australia with its main operating office in Gujarat, India.
The Company's main area of focus is in India where it operates three onshore production sharing contracts in Gujarat on behalf of Joint Ventures with Gujarat State Petroleum Corporation Ltd (GSPC). Of these, the Cambay Field contract area has considerable oil and gas resources and Oilex intends to further evaluate and exploit these through proven North American tight gas and "shale gas" technology, including horizontal drilling and fracture stimulation. The first horizontal is expected to start drilling in May 2011 and will be fracture stimulated prior to production testing.
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