Oilex Ltd Cambay Field - Gas Sales Commence (4442R)
June 29 2015 - 2:00AM
UK Regulatory
TIDMOEX
RNS Number : 4442R
Oilex Ltd
29 June 2015
ASX Announcement
29 June 2015
ASX: OEX
AIM: OEX
Cambay Field: Gas Sales Commence
-- Gas sales have commenced from Cambay-73 well which
demonstrated deliverability in excess of 95 boepd during start-up
operations, significantly above expectation.
-- Cambay-73 average daily production is now 50.5 boepd,
including condensate, as production increases.
-- Field production will further increase when Cambay-77H starts
production and the 5 firm workovers are completed in H2 2015.
-- Targeting cash flow positive operations in India by the end of 2015.
Oilex Ltd is pleased to announce the commencement of gas sales
from Cambay-73 into the low pressure local market near the Cambay
Field. Average daily production from Cambay-73 is 50.5 boepd
including condensate. This is the first gas to be sold from the Y
zone in the Eocene EP-IV Formation that contains 2P gas Reserves of
206 Bcf and 2P oil Reserves of 8 MMbbls as independently assessed
by RISC Operations Pty Ltd. For further information, please refer
to Oilex's announcement dated 16 April 2015 for details of the
independently classified Cambay Field Reserves and Contingent
Resources.
Demand for gas from local light industrial businesses is
ongoing, with expressions of interest to purchase gas continuing to
be received by Oilex including from buyers who previously bid for
Cambay-73 gas. Later this year, Oilex intends to recommence
production from Cambay-77H to increase gas sales to the local
market as well as commencing gas sales from Bhandut-3. In addition,
the approved firm work programme for 2015/16, which is subject to
available funding, includes 5 well workovers and consideration is
being given to those which have penetrated the same formation and
could be capable of gas production for the local market.
Condensate (API 49 ) co-produced with gas is separated at the
Cambay Field, combined with other Cambay Field crude oil and
transported by truck to be sold to a nearby refinery at import
parity price using Bonny Light Crude as a marker reference.
Managing Director of Oilex, Ron Miller, said;
"The commencement of gas production from Cambay-73 facilities is
a significant milestone for Oilex and marks the first step on the
path to achieving positive cash flow from operations in India.
Oilex continues to deliver on its plan of production, near-term
cash flow and reserves growth to create a sustainable business in
the midst of a robust and supportive domestic market for petroleum
energy."
For and on behalf of Oilex Ltd
Ron Miller
Managing Director
For further information, please contact the company or its
advisors listed below:
PAC Partners Strand Hanson Vigo Communications
Pty Ltd Westhouse Securities Limited Public Relations
Australian Limited Nominated UK
Broker AIM Broker Adviser Patrick d'Ancona
Andrew Shearer Robert Finlay Rory Murphy / Chris McMahon
Email: / Alastair Stratton /Ritchie Email:
ashearer@pacpartners.com.au Email: Balmer patrick.dancona@vigocomms.c
Tel: +61 alastair.stratton@westhousese Email: om
3 8633 9862 curities.com oilex@strandhanson.co.uk chris.mcmahon@vigocomms.com
Australia Tel: +44 20 7601 Tel: +44 Tel: +44 20
6100 20 7409 3494 7016 9570
UK UK UK
============================ ============================== ========================== ============================
http://www.rns-pdf.londonstockexchange.com/rns/4442R_-2015-6-29.pdf
Qualified Petroleum Reserves and Resources Evaluator
statement
Pursuant to the requirements of Chapter 5 of the ASX Listing
Rules, the information in this report relating to petroleum
reserves and resources is based on and fairly represents
information and supporting documentation prepared by or under the
supervision of Mr. Peter Bekkers, Chief Geoscientist employed by
Oilex Ltd. Mr. Bekkers has over 19 years experience in petroleum
geology and is a member of the Society of Petroleum Engineers and
AAPG. Mr. Bekkers meets the requirements of a qualified petroleum
reserve and resource evaluator under Chapter 5 of the ASX Listing
Rules and consents to the inclusion of this information in this
report in the form and context in which it appears. Mr. Bekkers
also meets the requirements of a qualified person under the AIM
Note for Mining, Oil and Gas Companies and consents to the
inclusion of this information in this report in the form and
context in which it appears.
LIST OF DEFINITIONS
API A unit of measurement established by
the American Petroleum Institute (API)
that indicates the density of a liquid.
Fresh water has an API density of 10.
----------------- -----------------------------------------------
Bbls Barrels of oil or condensate.
----------------- -----------------------------------------------
Bcf Billion Cubic Feet of gas at standard
temperature and pressure conditions.
----------------- -----------------------------------------------
Boe Barrels of Oil Equivalent. Converting
gas volumes to the oil equivalent is
customarily done on the basis of the
nominal heating content or calorific
value of the fuel. Common industry
gas conversion factors usually range
between 1 barrel of oil equivalent
(BOE) = 5,600 standard cubic feet (scf)
of gas to 1 BOE = 6,000 scf.
----------------- -----------------------------------------------
Boepd Barrels of oil equivalent per day.
----------------- -----------------------------------------------
Mscfd Thousand standard cubic feet of gas
per day.
----------------- -----------------------------------------------
MMscfd Million standard cubic feet of gas
per day.
----------------- -----------------------------------------------
MMbbls Million barrels of oil or condensate.
----------------- -----------------------------------------------
MMscfe/d Million standard cubic feet equivalent
of gas a day.
----------------- -----------------------------------------------
MMscfe Million standard cubic feet equivalent
of gas.
----------------- -----------------------------------------------
PSC Production Sharing Contract.
----------------- -----------------------------------------------
Reserves Reserves are those quantities of petroleum
anticipated to be commercially recoverable
by application of development projects
to known accumulations from a given
date forward under defined conditions.
Proved Reserves are those quantities
of petroleum, which by analysis of
geoscience and engineering data, can
be estimated with reasonable certainty
to be commercially recoverable, from
a given date forward, from known reservoirs
and under defined economic conditions,
operating methods and government regulations.
Probable Reserves are those additional
Reserves which analysis of geoscience
and engineering data indicate are less
likely to be recovered than Proved
Reserves but more certain to be recovered
than Possible Reserves.
Possible Reserves are those additional
reserves which analysis of geoscience
and engineering data indicate are less
likely to be recoverable than Probable
Reserves.
Reserves are designated as 1P (Proved),
2P (Proved plus Probable) and 3P (Proved
plus Probable plus Possible).
Probabilistic methods
P90 refers to the quantity for which
it is estimated there is at least a
90% probability the actual quantity
recovered will equal or exceed. P50
refers to the quantity for which it
is estimated there is at least a 50%
probability the actual quantity recovered
will equal or exceed. P10 refers to
the quantity for which it is estimated
there is at least a 10% probability
the actual quantity recovered will
equal or exceed.
----------------- -----------------------------------------------
Tight Gas The reservoir cannot be produced at
Reservoir economic flow rates or recover economic
volumes of natural gas unless the well
is stimulated by hydraulic fracture
treatment, a horizontal wellbore, or
by using multilateral wellbores.
----------------- -----------------------------------------------
Condensate(C5(+) A natural gas liquid with a low vapor
) pressure compared with natural gasoline
and liquefied petroleum gas. Condensate
is mainly composed of propane, butane,
pentane and heavier hydrocarbon fractions.
The condensate is not only generated
into the reservoir, it is also formed
when liquid drops out, or condenses,
from a gas stream in pipelines or surface
facilities.
----------------- -----------------------------------------------
mD (Millidarcy) A darcy (or darcy unit)
and millidarcy (md or mD) are units
of permeability, named after Henry
Darcy. They are not SI units, but they
are widely used in petroleum engineering
and geology. Like other measures of
permeability, a darcy has dimensional
units in length.
----------------- -----------------------------------------------
This information is provided by RNS
The company news service from the London Stock Exchange
END
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