6 May 2008 07:00
6 May 2008
OPERATIONS REPORT - INDIA AND OMAN
INDIA
Oilex advises that equipment has been mobilised to the Cambay-23Z location toconduct a preliminary cased hole drill stem test (DST) over the Eocene EP-IVgas bearing interval. The information from this initial test and other datagathered during the drilling program will then be reviewed to design anenhanced test involving fracture stimulation of the reservoir to increase thepotential gas flow rates from the well before further testing is carried out atCambay-23Z.In the meantime, the Dewanchand rig is being mobilised to the Cambay-19Zlocation and is expected to be ready to spud the well within approximately 7days. Cambay-19Z is located to test the Oligocene OS II, Eocene EP IV andDeccan fractured basement objectives near to the crest of the Western Highblock. The OS II and EP IV have proven to be oil or gas bearing in other Cambaywells and the Deccan objective is an exploration target that has not beenproven in the Cambay block.In the block to the north of Cambay, Gujarat State Petroleum Corporation, theother Joint Venture party in the Cambay Production Sharing Contract (PSC), hastested oil from this zone at rates of 1,000 - 1,500 barrels of oil per day(bopd).
Fig 1 Location of Cambay-19Z at the top OS II objective horizon (PLEASE REFER TO THE OILEX WEBSITE TO VIEW THIS FIGURE)
Fig 2 Stratigraphic section with reservoirobjectives for each of the 6 Cambayappraisal wells(PLEASE REFER TO THE OILEX WEBSITE TO VIEW THIS FIGURE)
Participants in the Cambay PSC 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 explorationprogram in Block 56, has been drilled to a depth of 322 metres and intermediate133/8" casing has been run and cemented. The well is anticipated to be drilledto a depth of approximately 1,630 metres.Alyanbou-1 is an exploration well testing a simple structural play with anestimated unrisked resource potential in the range of 10-375 (mean 135) millionbarrels oil-in-place. The well, in the northeastern part of the block on themargin of the Tertiary Basin is located in an area where no wells have beendrilled in the past.Fig 3 Well locations on top Natih Fm depth map.(PLEASE REFER TO THE OILEX WEBSITE TO VIEW THIS FIGURE)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 otherglossaries 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, thewebsite 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)
The information in this report has been compiled by the Managing Director ofOilex Ltd, Bruce McCarthy B.Sc. Hons PhD (Geology) who has over 29 yearsexperience in petroleum geology and Ray Barnes, B.Sc. Hons the TechnicalDirector of Oilex Ltd who has over 35 years experience in petroleum geology andis a member of the AAPG and EAEG. Estimates of oil-in-place are reported inaccordance with the standard definitions set out by the Society of PetroleumEngineers, further information on which is available at www.spe.org.RFC Corporate Finance Ltd acts as Oilex's Nominated Adviser - contact StuartLaing +618 9480 2506. ABN 50 078 652 632 Level 2, 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: oilex@oilex.com.au Web: www.oilex.com.au
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