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 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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