02 September 2008
SUBJECT: OPERATIONS REPORT - INDIA
Oilex advises that Cambay-73, the third well in the Cambay Field appraisal
program, is at a depth of 2,030 metres and conducting an open hole drill stem
testing ("DST") program. Pressure and flow data collected during this program
will be further evaluated to determine the potential for production at
commercial rates from the tested zones.
The workover rig is continuing operations on Cambay-19Z for the cased hole
testing program of the extensions to the Basal EP IV oil zone.
Cambay-19Z appraisal well
Objectives: Primary: Oligocene OS II - gas
Eocene EP III and EP IV - oil
Basal EP IV - oil
Secondary: Miocene Basal Sandstone - gas
Deccan Fractured Basement - oil
Status: Daylight only operations on the workover rig are continuing in
preparation for cased hole DST #2.
Operations: Most essential equipment arrived at the Cambay-19Z location and is
being installed in preparation for DST#2. Test intervals have been
selected over a number of separate units of variable thickness in
the Basal EPIV section.
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.
Cambay-73 appraisal well
Objectives: Primary: Oligocene OS II - gas
Eocene EP III and EP IV - gas / oil
Basal EP IV - oil
Secondary: Miocene Basal Sandstone - gas
Deccan Fractured Basement - oil
Status: Spud: 03:00 hrs 25 July 2008
Current Depth: 2,030 metres
Total Depth (TD): 2,205 metres (planned)
Operations: A program of open hole drill stem tests are currently being run
over the Basal EPIV and EPIII/ EPIV intervals to determine the
hydrocarbon flow characteristics of a number of anomalous zones.
On conclusion of the testing program, casing will be run and
cemented and the well will be drilled through the Deccan
Volcanics.
Comments: Cambay-73 is a vertical well that has been located to drill the OS
II and EP III-IV primary objectives on the crest of the structure
near to the fault that separates the Western High Block from the
Basin Gas Area.
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 (see report on 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 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. McCarthy
Managing 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 geology and Ray Barnes, B.Sc. Hons. the Technical
Director of Oilex Ltd who 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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