20 May 2008 07:00
20 May 2008
SUBJECT: OPERATIONS REPORT - INDIA AND OMAN
INDIA
TESTING OPERATIONS CAMBAY-23Z APPRAISAL WELL
Oilex advises that approximately 13 metres of additional section was added to the test interval in the EP - IV gas zone. The well is being monitored while core analysis is being completed and consideration can be given to the optimal design of a fracture stimulation program in this zone.
CAMBAY-19Z APPRAISAL WELL
The Cambay-19Z well was spudded on 14 May and current operations are running casing at a depth of 578 metres MD. Cambay-19Z will be drilled to a depth of 2,350 metres to test the Oligocene OS II, Eocene EP IV and Deccan fractured basement objectives near to the crest of the Western High block.
In the block to the north of Cambay, Gujarat State Petroleum Corporation, the other Joint Venture party in the Cambay Production Sharing Contract (PSC), has tested oil from the fractured Deccan zone at rates of 1,000 - 1,500 barrels of oil per day (bopd).
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 was plugged and abandoned at a depth of 1199 metres without encountering hydrocarbon indications and the rig has been released on a 60 day assignment before returning to commence the second phase exploration drilling program of 4 additional wells in Block 56.
SUMMARY OF PHASE 1 DRILLING RESULTS
Oilex is pleased with the results of the Phase 1 drilling program in Block 56, Oman. Prospects selected for the 3 well program were based on the interpretation of existing seismic data and provided a balance of exploration targets ranging from moderate (Sarha-1, Ghadaq-1) to high risk (Alyanbou-1).
The Sarha-1 discovery well confirmed that the productive trend in the adjacent block continues into Block 56. New seismic acquisition and reprocessing of existing data indicates that there is a number of structures similar to Sarha-1 present in the western flank area of Block 56 and the most prospective of these will be the locations for several wells in the Phase 2 drilling campaign. It is anticipated that further drilling will be carried out on the Sarha discovery to evaluate the potential of oil zones not able to be tested in Sarha-1 and to provide information required for development of the Al Khlata oil pool.
Volumetric estimates are preliminary while further seismic reprocessing and reinterpretation is under way. Estimates of the discovered petroleum initially in placebased on the current data range from 20 to 70 million barrels (on a 100% basis). Given the characteristics of the oil recovered at Sarha-1 there will also be a focus on establishing the recoverable reserves volume and specialists in this type of development are studying the data from Sarha-1 to estimate the recoverable volumes and to provide input to a development plan.
Heavy oil (preliminary oil gravity of 13.30 API) was recovered during testing of the Al Khlata zone in the Ghadaq-1 well and these results will also be the focus of review given that oil with these characteristics is routinely produced in Oman and in other heavy oil areas.
The results from Alyanbou-1 which was a higher risk test of a large anticlinal structure in a remote area of the block will be incorporated into the overall prospectivity assessment.
Fig 1. Location Map Block 56
(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%
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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