12 Aug 2008 07:00
12 August 2008
SUBJECT: OPERATIONS REPORT - INDIA
Oilex advises that Cambay-73, the third well in the Cambay Field appraisal program, is at intermediate casing point at a depth of 1,600 metres. A workover rig has been mobilised to the location of Cambay-19Z and is rigging up to continue the testing program of the extensions to the Basal EP IV oil zone.
Cambay-19Z appraisal well
Objectives: Primary: Basal EP IV - oil Eocene EP III and EP IV - oil Secondary: Oligocene OS II - gas Miocene Basal Sandstone - gas Deccan Fractured Basement - oil Status: A workover rig has been mobilised and is rigging up on site. Operations: Testing operations are likely to commence within the next 5 - 7 days. DST #2 will be carried out over a potential oil zone similar to the Basal EP IV. The test interval will comprise an
additional 29
metres of perforations over a number of separate zones of variable thickness between 1,990 - 2,068 metres. Comment: The Basal EP IV zone is present in at least three old wells on the Western High Block. These old wells were either not tested or were poorly evaluated and appear to have a similar log response to the zone that was successfully tested in Cambay-19Z. Preliminary indications from seismic and the analogous well logs are that the Basal EP IV may extend across the Western High Block. The Basal EP IV zone is also a primary objective of the well Cambay-73 currently drilling.
Cambay-73 appraisal well
Objectives: Primary: Oligocene OS II - gas Eocene EP III and EP IV - gas Basal EP IV - oil Secondary: Miocene Basal Sandstone - gas Deccan Fractured Basement - oil Status: Spud: 03:00 hrs 25 July 2008 Current Depth: 1,600 metres Total Depth (TD): 2,205 metres (planned) Operations: Completed wireline logging and conducted an open hole drillstem test (DST #1) of the OS II objective. The interval that was tested comprised about 2 metres of shaly sandstone reservoir interpreted from wireline logs. Gas shows were recorded while drilling and in DST #1 the gas flowed at a rate too small to measure. 30 litres of oil was recovered from the test string. No formation water was recovered during the test. Comments: Pressure data indicate that the zone is at virgin pressure and, with the oil recovery, suggest that it is part of the Western High geological compartment rather than the Basin Gas Area. Cambay-73 is a vertical well that has been located to drill the OS II and EP III-IV primary objectives on the eastern side of the fault that separates the Western High Block from the Basin Gas Area. It was anticipated that both zones would be gas bearing in this well and it now appears that the oil zone of the Western High Block extends further east than previously thought. The well is also designed to intersect the Basal EP IV oil zone on the Western High Block at a favourable structural location.
Figure 1. Cambay 73 Drilling Summary - please refer to 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 otherglossaries 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, thewebsite 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 ofOilex Ltd, Bruce McCarthy B.Sc. Hons. PhD (Geology) who has over 29yearsexperience in petroleum geology and Ray Barnes, B.Sc. Hons. the TechnicalDirector of Oilex Ltd who has over 35 years experience in petroleum geology andis a member of the AAPG & EAGE. Estimates ofoil-in-place arereported inaccordance with the standard definitions set out by the Society of PetroleumEngineers, further information on which is available at www.spe.org.
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