29 Apr 2008 07:00
29 April 2008
SUBJECT: OPERATIONS REPORT - INDIA AND OMAN
INDIA
Oilex advises that the Cambay-23Z well has been completed as a potential gasproduction well. The drilling rig was released on 26 April and commenced themove to the next location, Cambay-19Z. Testing operations on Cambay-23Z will beconducted by a specialist wireline and testing unit as soon as the drilling rigis off the location.During the past week, the rig completed the wireline logging program andvelocity survey and 7" liner was run and cemented from a depth of 2,080 metres.Production tubing was run and a 12 metre interval, part of the possiblegas-bearing zone of interest in the upper and middle part of the EP IV, wasperforated. No flow has yet been established from the EP IV and once initialtesting has been concluded, a fracture stimulation is planned with theobjective to increase the gas flow potential and well productivity.For each of the 6 wells in the Cambay program, the general plan is todemobilise the rig from each location as soon as drilling and loggingoperations are completed. Further tests on each well will be conducted with awireline unit that has the capability to undertake the full range of activitiesthat may be required to test the wells conclusively at a much lesser day rate.The other advantage in mobilising the rig to the next location in the sequenceat the earliest time is to minimise the risk of the rig and equipment beingstranded by adverse effects of the pending monsoon.
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
Alyanbou-1, the third and final well of the first phase 3 well explorationprogram in Block 56, Oman, spudded on 27 April and is expected to reach totaldepth of about 1,630 m in late May. In contrast to the Sarha and Ghadaq oildiscoveries which were drilled on structures similar to those of the main SouthOman Salt Basin, Alyanbou-1 is a wildcat exploration well testing a simplestructural play with an estimated unrisked resource potential of 10-375mmstboip (135 mmstboip mean) in the northeastern part of the block.Within Block 56 no wells have been drilled this far east of the main salt basinor in the Tertiary Basin. Alyanbou-1 is located to test a large inversionfeature located on the western margin of the large Tertiary basin which isseparated from the older Paleozoic basin to the west by the interpreted saltwall lineament.
Figure 1. Well locations on top Natih Fm depth map. (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 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.
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