28 Feb 2008 07:00
28 February 2008
SUBJECT:OPERATIONS UPDATE SARHA-1 TEST PROGRAM
Oilex Ltd advises that oil recoveries have been achieved in cased hole Drill Stem Test (DST) #2A of the Al Khlata Sandstone in the Sarha-1 well located in Exploration and Production Sharing Agreement Block 56, Oman. This test was conducted over the interval 1255 - 1295 metres using a progressive cavity pump, and pump rates were varied to produce between 30 and 60 cubic metres per day (200 - 400 barrels per day) while monitoring variations to reservoir and surface pressure.The recovered fluid is indicated to be up to 90% oil.
Following this flow period, the well was shut in and additional pressure build up data is being recorded. Data collected will be analysed to determine reservoir and oil properties for this DST interval.
Given the operational issues experienced during this Al Khlata test, the quality of the cement bond behind casing is being assessed to determine whether a test of the shallower Gharif Formation anomalous zone is warranted in the Sarha-1 well or is more appropriately carried out in a subsequent well.
Once the testing program has been completed in Sarha-1, the Abraj rig will move to Ghadaq-1, the second of the 3 exploration wells planned for the current phase of drilling in Block 56.
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