8 Jul 2008 07:00
8 July 2008
SUBJECT: OPERATIONS REPORT - INDIA
Cambay-19Z Appraisal Well - Oilex advises that drillstem testing of the top of the basal Eocene sand secondary objective is near completion. As advised previously, the 6 metre zone perforated between 1966 metres and 1972 metres flowed light sweet crude oil with a measured API gravity of 430 with a low wax content at a rate of approximately 180 barrels per day on a 1" choke with flowing pressure of 30 psi. Preparations are under way to perforate an additional 16 metre interval within the basal sand unit which has similar log response to the initial 6 metre test interval. These operations have been delayed due to the difficulty of obtaining materials during a trucking strike in India.
Meanwhile, the well fluids have been flowed through a separator installed at the well location at various rates to determine fluid composition and flowing pressure. Initial indications are that the gas oil ratio (GOR) is 840 standard cubic feet of gas per barrel and there is no formation water associated with the produced oil.
Diagram extracted from recent Oilex presentations that can be viewed on website
Oilex is pleased with the results of the testing over the past week, particularly the high gravity and good GOR characteristics of the oil in the basal Eocene and the absence of any formation water. This zone will be evaluated in two more wells planned in the current 6 well appraisal program.
On completion of testing at these deeper levels, the primary objective EP III and EP IV zones will be tested. Both units had good gas shows while drilling and have been mapped as regionally extensive markers across the Western High Block.
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 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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