8 Jan 2008 07:00
08 January 2008
OPERATIONS REPORT - OMAN DRILLING PROGRAM, INDIA
Oilex Ltd advises that the Sarha-1 exploration well, the first of three exploration wells in the Block 56 Production Sharing Contract Area, Sultanate of Oman is drilling ahead to casing point above the first objective horizon. The well spudded on 31 December 2007.
Current Operations
Current operations are drilling ahead in 121/4" hole below 896 m. The 95/8" casing point near the top of the Natih Formation is expected to be at about 930 m. Drilling operations are planned to take 18 days from spud and total depth is expected to be reached at a depth of approximately 1650m.
Sarha-1 Objectives
The well is planned to evaluate the prolific Permo-Carboniferous reservoir interval which is a major productive horizon across Oman. In addition the well will be deepened to intersect the prospective Cambrian Huqf Formation which has been found oil-bearing in adjacent wells.
Resource Estimates
Potential oil resource-in-place estimates are based on mapping of a single potential 10m thick reservoir unit in the shallower Permo-Carboniferous objective. No estimates have been made for the potential volumes in the Huqf Formation deeper objective below about 1500 m or for the potential of multiple reservoir units at the shallower level.
Resource Range: Sarha-1 6-40 mmstboip (20 mean) + large Huqf potential
Ghadaq-1 5-30 mmstboip (14 mean) + large Huqf potential
Alyanbou-1 10-375 mmstboip (135 mean)
(mmstboip - million stock tank barrels of oil in place)
Participants in the Block 56 Production Sharing Contract are:
Joint Venture Party Participating Interest Oilex (Oman) Ltd (Operator) 25% Videocon Industries Limited 25% GAIL (India) Limited 25% Hindustan Petroleum Corporation Limited 12.5% Bharat Petroleum Corporation Limited 12.5%
INDIA - Cambay Drilling Program
Delays in procuring certain essential equipment and rigging up the newly built rig by the contractor have led to postponement of the spud date for Cambay-23Z, the first well in the 9 month program. The bulk of the equipment is on site and the assembly of the rig is proceeding while waiting on the additional equipment.
At this point in time, we anticipate that the well may commence within the next 3-6 weeks. Oilex is taking all steps to expedite the commencement of the Cambay drilling campaign.
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 26 years 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. The oil-in-place estimate is 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.
OILEX LTD