29 Jul 2008 07:00
29 July 2008
SUBJECT: OPERATIONS REPORT - INDIA
Oilex advises that drilling commenced at Cambay-73, the third well in the Cambay Field appraisal program, on 24 July. The well is currently at a depth of 597 metres preparing to run 133/8" casing.
A wireline testing unit has been deployed at Cambay-19Z and has run more successful tests on the Basal EP IV oil zone while waiting for the arrival of a workover rig to begin Drillstem Test #2 (DST #2).
The following table gives a summary of current and planned operations.
Cambay-19Z appraisal well Objectives: Primary: Basal EP IV - oil Eocene EP III and EP IV - oil Secondary: Oligocene OS II - gas Miocene Basal Sandstone - gas Deccan Fractured Basement - oil Status: Testing at Basal EP IV oil zone while waiting on the arrival of a workover rig to begin DST #2 over deeper Basal EP IV prospective intervals. Operations: A wireline testing unit was successfully deployed and re-entered the well bore to conduct additional tests at the level of the Basal EP IV oil zone. The workover rig has been contracted and is expected to be on site within the next 10-14 days. DST #2 will be carried out over an interval of 16 metres of potential oil pay below the zone that was tested by DST #1. Results: Additional testing has confirmed the rates from the initial test and the well will continue to produce oil until the workover rig arrives. DST #1 successfully flowed oil to surface at a rate of over 800 barrels of oil per day (BOPD) for the first hour of the test and later stabilised at a rate of 120 BOPD on 1" choke during the final phase of the 32 hour flow period. No formation water was produced with the oil which is 410- 430 API gravity. The Basal EP IV zone is present in at least three old wells on the Western High Block. These old wells were either not tested or were poorly evaluated and appear to have a similar log response to the zone that was successfully tested in Cambay-19Z. Preliminary indications from seismic and the analogous well logs are that the Basal EP IV may extend across the Western High Block. Cambay-73 appraisal well Objectives: Primary: Oligocene OS II - gas Eocene EP III and EP IV - gas Basal EP IV - oil Secondary: Miocene Basal Sandstone - gas Deccan Fractured Basement - oil Status: Spud: 03:00 hrs 24 July 2008 Current Depth: 597 metres Total Depth (TD): 2,205 metres (planned) Operations: Preparing to run 133/8" casing before drilling ahead in 121/4" hole to the first of the main objective horizons at about 1,460 metres. Comments: Cambay-73 is a vertical well that has been located to drill the OS II and EP III-IV primary objectives on the eastern side of the fault that separates the Western High Block from the Basin Gas Area. It is anticipated that both zones will be gas bearing in this well. The well is also designed to intersect the Basal EP IV oil zone on the Western High Block at a favourable structural location.
Figure 1. Cambay-73 Schematic Well Bore Section - see full report on Oilex website
Figure 2. Cambay Field Appraisal Well Locations at main target horizons - see full report on Oilex website
Participants in the Cambay Production Sharing Contract are:
Joint Venture Party Participating Interest Oilex Ltd (Operator) 30% Oilex NL Holdings (India) Limited (100% owned by Oilex 15% Ltd) Gujarat State Petroleum Corporation 55%
A glossary of terms used in the oil and gas industry and useful links to other glossaries can be found at http://www.spe.org/spe-app/spe/industry/reference/ glossary.htmhttp://www.spe.org/spe-app/spe/industry/reference/glossary.htm, the website of the Society of Petroleum Engineers.
Yours sincerely,B. H. McCarthyManaging Director
For further information, please contact:
Ray Barnes, Technical Director, Oilex Ltd Tel. +61 8 9485 3200 (Western Australia)
Archie Berens, Director Pelham Public Relations Tel. +44 20 7743 6679 (United Kingdom)
RFC Corporate Finance Ltd acts as Oilex's Nominated Adviser, contact Stuart Laing +618 9480 2506
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 29years experience in petroleum geology and Ray Barnes, B.Sc. Hons. the Technical Director of Oilex Ltd who has over 35 years experience in petroleum geology and is a member of the AAPG & EAGE. Estimates ofoil-in-place arereported in accordance with the standard definitions set out by the Society of Petroleum Engineers, further information on which is available at www.spe.org.
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