4 Mar 2008 07:00
4 March 2008
SUBJECT: OPERATIONS REPORT- OMAN DRILLING PROGRAM
Oilex Ltd advises that preparations are underway to conduct Drill Stem Test (DST) #3 of the Lower Gharif Formation in the Sarha-1 well located in Exploration and Production Sharing Agreement Block 56, Oman. After a review of borehole conditions, additional cement has been squeezed behind casing to improve the isolation of the anomalous zone interpreted over the interval 1165 -1185 metres (measured depth). Testing will be carried out using a downhole progressive cavity pump to optimise flow rates in the event that heavier oil is produced during the test.
Once this test has been completed, the Abraj rig will move to the Ghadaq-1 location, the second of the 3 wells to be drilled during the current exploration drilling program.
After remedial cementing operations, DST #2A was conducted over the interval 1255-1295 metres last week and recovered fluid comprising up to 90% oil at surface at variable rates using a progressive cavity pump. The results are very encouraging given the poor hole conditions and the formation damage likely to have occurred during drilling when this and the overlying Gharif Formation, the subject of DST #3, were exposed to drilling water for an extended period while attempts were made to mitigate the total loss of drilling fluids in the Huqf Formation carbonates.
Participants in the Block 56 Exploration and Production Sharing Agreement areaare: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 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.
OILEX LTD