13 May 2008 07:00
13 May 2008
SUBJECT: OPERATIONS REPORT - INDIA AND OMAN
INDIA
Testing Operations Cambay-23Z- Oilex advises that testing operations at the level of the EP-IV gas bearing interval are continuing at the Cambay-23Z well. Some deeper, potentially gas bearing zones have been added to the test interval. The information gathered from Cambay-23Z will be used to design a fracture stimulation of the reservoir to increase the potential gas flow rates from the well before further testing is carried out. Cambay-23, the original well drilled a short distance to the northwest at the EP IV level was reported to have tested gas that was not brought into production.
Cambay-19Z- The mobilization of the rig to the Cambay-19Z location has been completed and the well is expected to spud within the next 2 days. Cambay-19Z is located to test the Oligocene OS II, Eocene EP IV and Deccan fractured basement objectives near to the crest of the Western High block.
The OS II and EP IV zones have proven to be oil or gas bearing in other Cambay wells and the Deccan objective is an exploration target that has not been proven in the Cambay block.
In the block to the north of Cambay, Gujarat State Petroleum Corporation, the other Joint Venture party in the Cambay Production Sharing Contract, has tested oil from the fractured Deccan zone at rates of 1,000 - 1,500 barrels of oil per day.
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 15% Oilex Ltd) Gujarat State Petroleum Corporation 55%
OMAN
Alyanbou-1, the third and final well of the first phase 3 well exploration program in Block 56, is drilling ahead below a depth of 770 metres. During the week 95/8" casing was run and cemented. The well is anticipated to be drilled to a depth of approximately 1,630 metres.
Alyanbou-1 is an exploration well in the northeastern part of the block, an area where no wells have been drilled in the past.
Participants in the Block 56 Exploration & Production Sharing Agreement are:
Joint Venture Party Participating Interest Oilex Oman Limited (Operator) 25% Videocon Industries Limited 25% GAIL (India) Limited 25% Hindustan Petroleum Corporation Limited 12.5% Bharat Petroleum Corporation Limited 12.5%
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 9226 5577 (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 29 years 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 and EAEG. Estimates of oil-in-place are reported 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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