15 Jul 2008 07:00
15 July 2008
SUBJECT: OPERATIONS REPORT - INDIA
Oilex advises that drillstem test one (DST-1) over the interval 1,966-1,972 metres (Basal EP IV Sand) was suspended during the week after a series of flow tests at different choke sizes. The well continued to flow oil with no formation water from the 6 metre zone perforated in DST-1 at controlled rates between 75 - 125 barrels oil per day (bopd) dependent on the choke setting. The rig was released to the location of Cambay-34 and the intent is now to employ a workover rig to complete a comprehensive series of DST's at Cambay-19Z, now expanded since the first success recorded last week, at a much more cost effective rate.
CAMBAY-19Z APPRAISAL WELL - A smaller workover rig will be brought on site as soon as the drilling rig has completed its demobilization from Cambay-19Z location. The workover rig will provide a cost effective means of conducting an extended test program at the deeper Basal EP IV Sand and the EP III-IV primary objectives. The planned program will be resumed with perforation of an additional 16 metre interval within the Basal EP IV Sand unit, followed by testing of the EP III and EP IV.
On conclusion of the test program, a decision will be made on completing the well as an oil production well.
Schematic well diagram - see full report on Oilex website
CAMBAY-34Z APPRAISAL WELL Cambay-34Z is located to the southeast of Cambay-19Z and on the eastern side of the main fault that separates the Western High Block from the Basin area. The main reservoir objectives are the Oligocene OS II sandstones, Eocene EP III and EP IV siltstones and Basal EP IV sandstones. These objectives are similar to those of Cambay-19Z in a different geological setting.
The primary aim of this program of appraisal wells is to have at least one new data point in each of the geological compartments that have been mapped from the 3D seismic survey and detailed well correlations. Cambay-34Z will give key control points at the level of OS II and EP III-IV in the Basin Gas area at a structurally high location (see figures below). The well will then cross the main fault to intersect the Basal EP IV Sandstone (equivalent zone that flowed oil in Cambay-19Z from DST-1) at a point interpreted to be structurally higher at this stratigraphic level than Cambay-19Z on the Western High Block.
Location map 2008 appraisal wells Cambay Field - see full report 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%
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 9485 3200 (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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