TIDMOEX
RNS Number : 3896K
Oilex Ltd
16 April 2015
ASX Announcement
16 April 2015
ASX: OEX
AIM: OEX
Cambay Field - Reserves and Contingent Resources
X and Y Zones - Summary
-- Gross Proved + Probable (2P) Reserves of 206 Bcf gas and 8.0
MMbbls of condensate (C5(+) ) in the Y zone (Oilex net working
interest 93 Bcf gas and 3.6 MMbbls of C5(+) )
-- Gross 2C Unrisked Contingent Resources of 720 Bcf gas and
52.8 MMbbls of C5(+) in the X and Y zones
(Oilex net working interest 324 Bcf gas and 23.8 MMbbls of C5(+)
)
-- 2P Reserves validate Oilex's forward program for commercial development of the Cambay Field
Oilex is pleased to announce that RISC Operations Pty Ltd
(RISC), an Australian based, internationally recognised independent
petroleum advisory group, has completed an independent Resource
Report of the Eocene Formation of the Cambay Field. This work
follows on from its evaluation of Cambay-77H flowback and test data
in December 2014. RISC has evaluated 2 of 6 potential Eocene
reservoirs, the X and Y Zones, and the results for Reserves and
Contingent Resources are summarised below.
Table 1: Reserves
Estimated Cambay Field Reserves
------------------- ---------------------------------------------------
1P* 2P 3P
----------------- --------------- ---------------
Gas C5(+) Gas C5(+) Gas C5(+)
Y Zone Bcf MMbbls Bcf MMbbls Bcf MMbbls
------------------- ------ --------- ----- -------- ----- --------
Total - Gross Nil Nil 206 8.0 377 17.3
------------------- ------ --------- ----- -------- ----- --------
Oilex net working
interest Nil Nil 93 3.6 170 7.8
------------------- ------ --------- ----- -------- ----- --------
*Gross 90 Bcf of gas and 2.9 MMbbls of C5(+) (Oilex net working
interest of 40.5 Bcf of gas and 1.3 MMbbls of C5(+) ) would be
categorised as 1P subject to securing finance for the development,
according to the PRMS guidelines. These quantities are included in
the 1C Contingent Resources in Table 2.
Table 2: Contingent Resources
Unrisked Cambay Field Contingent Resource Estimates
------------------- --------------------------------------------------------------
1C 2C 3C
------------------- --------------------- ------------------ -------------------
X and Y Zones Gas C5(+) Gas C5(+) Gas C5(+)
Bcf MMbbls Bcf MMbbls Bcf MMbbls
------------------- -------- ----------- ------ ---------- ------- ----------
Total - Gross 388 23.7 720 52.8 1239 104
------------------- -------- ----------- ------ ---------- ------- ----------
Oilex net working
interest 215** 12** 324 23.8 557.6 46.8
------------------- -------- ----------- ------ ---------- ------- ----------
**Includes Oilex net working interest of 40.5 Bcf of gas and 1.3
MMbbls of C5(+) that would be categorised as 1P subject to securing
finance for the development.
Notes to Tables
(1) The Reserves and Contingent Resources estimates prepared by
RISC as of 1 April 2015, and stated in the tables above, have been
prepared in accordance with the definitions and guidelines set
forth in Petroleum Resources Management System, 2007 (PRMS)
approved by the Society of Petroleum Engineers (SPE).
(2) The Reserves and Contingent Resources shown in the above
tables have been estimated using probabilistic methods. The total
in Table 2 is the statistical aggregate of the relevant
volumes.
(3) The estimates included in Table 2 Contingent Resources have
not been adjusted for the chance of development due to one or more
contingencies.
(4) These estimates have not been endorsed by the Government of
India or the Directorate General of Hydrocarbons, India.
(5) Oilex is operator of, and has a 45% net working interest in,
the Cambay Field Production Sharing Contract (PSC). Net working
interest is not the same as the net economic entitlement under the
Cambay PSC and the net economic entitlement varies with development
strategy and size. For reference, Oilex's net economic entitlement
for the 2P volumes is estimated to be 94.4% of its net working
interest.
(6) Cambay Field covers 161 sq. km. and environmental approvals
have been granted for 60 wells and modernization and expansion of
the Gas Gathering Station (GGS). 34 new wells are estimated to be
required for recovery of the Reserves. The actual well count may
vary.
(7) Contingent Resources were previously announced on 11 October
2011 and there has been no revision until this announcement.
The Reserves are attributed to an area of the Cambay Field
having multiple vintage and modern well intersections of the X and
Y Zones with hydrocarbon flows. The area encompasses recent Oilex
operated drilling and production testing activity including the
successful Cambay-77H well, the first successfully production
tested multi-stage frac'd horizontal well in India. Gas is
currently marketed on a competitive tender basis to buyers and will
be sold into a low pressure local market, commencing with
Cambay-73. Contractual commitments are in place from previous
tendering activities and cover gas sales for up to 2 years.
As announced on 9 March 2015, the approved budget for 2015/16
incorporates 2 firm wells, 2 contingent wells and up to 5 firm
workovers. The firm wells target increasing production to a level
that justifies selling gas into the high pressure market through a
nearby gas pipeline network. One of the contingent wells in the
2015/16 budget targets upgrading X and Y Zone Contingent Resources.
Additional drilling and facilities expansion will be planned for
delivery in subsequent budget years subject to Joint Venture and
Government of India approvals.
The Cambay Field is located approximately 10km from the gas
pipeline network with spare capacity. The pipeline connection to
the high pressure grid will be constructed and owned by a third
party, which may be an affiliate of Oilex's joint venture partner,
Gujarat State Petroleum Corporation (GSPC). Timing of construction
has yet to be determined.
The 2P Reserves are anticipated to support a plateau gas
production rate of 50MMscfd, whilst the 2P + 2C combined volumes
may support a plateau gas production rate of 125 - 250MMscfd.
Studies, yet to be completed, will determine an optimum field gas
production profile and incorporate data from wells drilled as part
of the 2015/16 budget. Further explanatory information pertaining
to the RISC Reserves and Resource Report is contained in Appendix
A.
Managing Director of Oilex, Ron Miller, said;
"The work by RISC has resulted in first Eocene formation
Reserves for Oilex in India and recognises the success of our 2014
work program. These Reserves provide a strong foundation for the
immediate development of the Cambay Field and achievement of our
key corporate goals of increasing production, cash flow and
reserves. Oilex's first-mover advantage in opening Cambay Basin
(and India) to development of its significant tight oil and gas
resources, places the Company on a strong growth trajectory in a
robust energy market."
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 Broker Limited Nominated Adviser UK
Andrew Shearer AIM Broker Rory Murphy/Ritchie Patrick d'Ancona/Chris
Email: Robert Finlay/Alastair Balmer McMahon
ashearer@pacpartners.com.au Stratton Email: Email:
Tel: +61 3 8633 Email: oilex@strandhanson.co.uk patrick.dancona@vigocomms.c
9862 alastair.stratton@westhousese Tel: +44 20 7409 om
Australia curities.com 3494 chris.mcmahon@vigocomms.com
Tel: +44 20 7601 UK Tel: +44 20 7016
6100 9570
UK UK
---------------------------- ------------------------------ -------------------------- ----------------------------
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.
Appendix A: Explanatory Notes Relating to this Reserves and
Resource Report
a. Methodology regarding Reserves and Resources
The Reserves Report has been prepared to be consistent with the
PRMS 2007 published by SPE. This document may be found at the SPE
website: spe.org/spe-app/spe/industry/reserves/. Additionally, this
Reserves and Resource Report has been prepared to be consistent
with the ASX and AIM reporting guidelines and listing rules.
Well production forecasts were generated using numerical
simulation based on the planned multiple-fractured well design and
using reservoir characteristics from test and log data. Capital and
operating costs were estimated from historical data and regional
knowledge. A field forecast was generated by scheduling wells to
meet a target sales plateau. Produced gas is assumed to be
processed to remove condensate, no specialised treatment is
required.
Reserves and resources are stated net of fuel with the reference
point for sales taken as the plant gate. The majority of the future
production will come from 34 new wells, some production will come
from existing wells, but as these require further capital spend on
pipelines they are reported as undeveloped.
b. Economic test for reserves
The assessment of Reserves requires a commercial test to
establish that reserves can be economically recovered. Within the
commercial test, time series operating cost and capital cost
estimates are combined with fiscal regimes and product pricing to
confirm the economic viability of producing the reserves using a
Discounted cash Flow (DCF) analysis.
In the case of oil and condensate forward estimates of prices
are used in line with the forward curves available through various
international benchmarking agencies, appropriately adjusted for
local market conditions. Gas reserves are assessed against existing
contractual arrangements and local market conditions, as
appropriate.
c. Information regarding the preparation of this Reserves
Report
The RISC Report and data has been compiled by Mr Bruce Gunn, a
full-time employee of RISC. Mr. Bruce Gunn has consented to the
statements based on this information, and to the form and context
in which these statements appear.
d. Abbreviations and Definitions
Associated Natural gas found in contact with or dissolved
Gas in crude oil in the reservoir. It can be further
categorized as Gas-Cap Gas or Solution Gas.
----------------- -------------------------------------------------------------------------------------
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.
----------------- -------------------------------------------------------------------------------------
Bcfe Billion Cubic Feet Equivalent 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.
----------------- -------------------------------------------------------------------------------------
Bopd Barrels of oil per day.
----------------- -------------------------------------------------------------------------------------
CO(2) Carbon dioxide.
----------------- -------------------------------------------------------------------------------------
Contingent Those quantities of petroleum estimated, as of
Resources a given date, to be potentially recoverable from
known accumulations by application of development
projects, but which are not currently considered
to be commercially recoverable due to one or more
contingencies.
Contingent Resources may include, for example,
projects for which there are currently no viable
markets, or where commercial recovery is dependent
on technology under development, or where evaluation
of the accumulation is insufficient to clearly
assess commerciality. Contingent Resources are
further categorized in accordance with the level
of certainty associated with the estimates and
may be sub-classified based on project maturity
and/or characterised by their economic status.
----------------- -------------------------------------------------------------------------------------
Hydraulic http://www.energy4me.org/hydraulicfracturing/inside-fracturing/tour-fracturing-site/
Fracturing
----------------- -------------------------------------------------------------------------------------
OGR Oil to gas ratio in an oil field, calculated using
measured natural gas and crude oil volumes at stated
conditions. The gas/oil ratio may be the solution
gas/oil, symbol Rs; produced gas/oil ratio, symbol
Rp; or another suitably defined ratio of gas production
to oil production. Volumes measured in scf/bbl.
----------------- -------------------------------------------------------------------------------------
H(2) S Hydrogen sulphide. An extraordinarily poisonous
gas with a molecular formula of H2S. At low concentrations,
H2S has the odor of rotten eggs, but at higher,
lethal concentrations, it is odorless. H2S is hazardous
to workers and a few seconds of exposure at relatively
low concentrations can be lethal, but exposure
to lower concentrations can also be harmful.
----------------- -------------------------------------------------------------------------------------
LPG (Liquefied Petroleum Gas) Gas mainly composed of
propane and butane, which has been liquefied at
low temperatures and moderate pressures. The gas
is obtainable from refinery gases or after the
cracking process of crude oil. Liquefied petroleum
gas is also called bottle gas. At atmospheric pressure,
it is easily converted into gas and can be used
industrially or domestically. The term is commonly
abbreviated as LPG.
----------------- -------------------------------------------------------------------------------------
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
----------------- -------------------------------------------------------------------------------------
MD Measured Depth.
----------------- -------------------------------------------------------------------------------------
Prospective Those quantities of petroleum which are estimated,
Resources as of a given date, to be potentially recoverable
from undiscovered accumulations.
----------------- -------------------------------------------------------------------------------------
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.
----------------- -------------------------------------------------------------------------------------
SCF/BBL Standard cubic feet (of gas) per barrel (of oil).
----------------- -------------------------------------------------------------------------------------
Tcf Trillion cubic feet (of gas), which is a 1000 Bcf.
----------------- -------------------------------------------------------------------------------------
Tight Gas The reservoir cannot be produced at economic flow
Reservoir 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.
----------------- -------------------------------------------------------------------------------------
Undiscovered Is that quantity of petroleum estimated, as of
in place a given date, to be contained within accumulations
volume yet to be discovered.
----------------- -------------------------------------------------------------------------------------
bwpd Abbreviation for barrels of water per day, a common
unit of measurement.
----------------- -------------------------------------------------------------------------------------
Core Analysis Laboratory study of a sample of a geologic formation,
usually reservoir rock, taken during or after drilling
a well. Economic and efficient oil and gas production
is highly dependent on understanding key properties
of reservoir rock, such as porosity, permeability
and wettability. Geoscientists have developed a
variety of approaches, including log and core analysis
techniques, to measure these properties. Core analysis
is especially important in tight reservoirs because
of the vertical and lateral heterogeneity of the
rocks. Core analysis can include evaluation of
rock properties and anisotropy; organic matter
content, maturity, and type; fluid content; fluid
sensitivity; and geomechanical properties. This
information can be used to calibrate log and seismic
measurements and to help in well and completion
design, well placement, and other aspects of reservoir
production.
----------------- -------------------------------------------------------------------------------------
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(2).
----------------- -------------------------------------------------------------------------------------
Plug and The wellbore for a plug and perf job is generally
Perf composed of standard steel casing, cemented or
uncemented, set in the drilled hole. Once the drilling
rig has been removed, a wireline truck is used
to perforate near the bottom of the well, and then
fracturing fluid is pumped. Then the wireline truck
sets a plug in the well to temporarily seal off
that section so the next section of the wellbore
can be treated. Another stage is pumped, and the
process is repeated along the horizontal length
of the wellbore.
----------------- -------------------------------------------------------------------------------------
This information is provided by RNS
The company news service from the London Stock Exchange
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