15 Apr 2008 07:00
15 April 2008
SUBJECT: OPERATIONS REPORT - INDIA AND OMAN
INDIA
Oilex advises that the Cambay-23Z well is continuing to cut the second of two cores in the primary EP-IV reservoir objective at a depth below 1975 metres Measured Depth (MD). Increased gas readings indicate that the interval is hydrocarbon bearing confirming the results of the Cambay-23 well drilled in the 1960's and is consistent with the extensive seismic amplitude anomaly recognised at this depth on the Cambay 3D data. Once coring has been completed and the well Total Depth (2085m MD) has been reached, an intensive wireline logging and production testing program will be conducted.
EP-IV seismic amplitude map illustrating extensive channel complex.
(see report posted 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%
OMAN
Ghadaq-1 well, the second of a 3 well exploration program in Block 56, Oman is currently being plugged and abandoned after completing two cased hole tests of anomalous zones in the lower Haima and Al Khlata sandstones which were interpreted to be oil-bearing. While both tests are considered to be mechanically successful, preliminary evaluation of test results indicate that the quality of the crude oil at both horizons severely inhibited flow such that only minor traces of oil were observed in the Haima test while a total of approximately 17 barrels of viscous oil was recovered during the Al Khlata test.
These test results will be further evaluated to ascertain the commercial potential of the Ghadaq prospect. Ghadaq-1 was significant in confirming the presence of migrated oil further into Block 56 than had been previously established.
Once the abandonment operations have been completed at Ghadaq-1, the Abraj rig will move to the Alyanbou-1 exploration well location. Alyanbou-1 is a wildcat exploration well testing a simple structural play with an estimated unrisked resource potential of 10-375 mmstboip (135 mean).
Natih Fm depth map illustrating Alyanbou-1location.
(see report posted on Oilex website)
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% 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 28 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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