17 Jun 2008 07:00
17 June 2008
SUBJECT: OPERATIONS REPORT - INDIA
Cambay-19Z appraisal well - Oilex advises that current operations are preparing to run 7" liner after drilling to 2,101 metres and logging the Eocene EP III and IV primary objectives. During the logging operations, after successfully drilling the Eocene primary objective section which gave good gas shows, a logging tool was lost downhole and operations to recover the tool were completed yesterday. Logs over the EP III and IV are not yet available.
The logs from Basal Miocene and Oligocene OS II secondary objectives in this well intersected at 1,505 metres and 1,545 metres respectively indicate the presence of about 9 metres of gas-bearing pay in these sandstones that are of good reservoir quality, each with about 25% average porosity. The next objective in the well is the fractured Deccan Basalt and overlying potential reservoir horizons. The well is planned to be drilled to a total depth of about 2,350 metres.
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%
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 29years experience in petroleum geologyand Ray Barnes, B.Sc. Hons.the Technical Director of Oilex Ltdwho has over 35 years experience in petroleum geology and is a member of the AAPG & EAGE. Estimates ofoil-in-place arereported 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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