Oilex Ltd Cambay PSC Workover and Project Update (2370H)
June 06 2017 - 2:10AM
UK Regulatory
TIDMOEX
RNS Number : 2370H
Oilex Ltd
06 June 2017
ASX Announcement
6 June 2017
ASX: OEX
AIM: OEX
Cambay PSC Workover and Project Update
Oilex Ltd (the Company) provides the following update on the
field workover programme and ongoing activities.
Workover Programme
The field programme involving the workover of two older wells
C-70 and C-23z to test potential production flow rates from the
OS-II reservoir has been completed. The results on C-70 are
currently under review with the well returning small volumes of
both oil and gas. A sustained flow has not yet been confirmed and
the well is being monitored for clean-up flow. The Company is
considering whether further stimulation is warranted. The work on
C-23z has resulted in an observed water influx into the well bore,
however, no hydrocarbons have been recovered.
The field program has been completed under the highest HES
controls and has come in under budget.
EP-IV Core Analysis
Historical core samples from C-23z are currently being analysed
and tested by Schlumberger with completion of the work and delivery
of results anticipated later in July. Baker Hughes is currently
completing an initial desk study on EP-IV wells in the PSC in
advance of undertaking evaluation work to provide direction on the
optimal stimulation methodologies for future drilling and
testing.
Gas Production
Cambay gas production is currently being achieved from the C-77H
well at approximately 250,000 cubic feet per day.
The Bhandut Field is continuing to flow gas at approximately
250,000 cubic feet per day from the Bhandut-3 well. Water
production rates are increasing with the water gas ratio presently
at approximately 40%.
Cambay Joint Venture
The Company is currently in discussions with several potential
partners who are undertaking data room reviews of the EP-IV tight
gas potential at Cambay. Should any change in the structure of the
joint venture eventuate, a restructure of the Company's ongoing
funding commitment to the Cambay Project may ensue.
Work on the Field Development Plan is continuing using both
in-house personnel and contracted specialists as part of the
application for an extension of the PSC term beyond September 2019.
The application is required to be lodged by September 2017.
The Company continues to maintain a constructive dialogue with
GSPC in respect of resolving the outstanding cash calls.
Bhandut Joint Venture
Upside exploration potential has been identified on the PSC and
the Company is in discussions with a potential buyer for its
interest in the Bhandut field.
New Business Opportunities
The Company continues to evaluate potentially value accretive
new business opportunities ranging from discovered undeveloped
resources with exploration upside to existing production. In
general, we note the frequency and quality of available
opportunities in the sector as presented to the Company has
improved markedly in recent months.
Managing Director of Oilex Joe Salomon, said;
"The Company remains active in all areas and we continue to work
closely with our Indian partner and the Government of Indian, to
ensure that the full potential of the Cambay Project can be
realised. In addition, we are reviewing several new business
opportunities internationally."
For and on behalf of Oilex Ltd
Jonathan Salomon
Managing Director
For further information, please contact:
Investor AIM Broker AIM Nominated Media Enquires Media Enquiries
Enquiries Cornhill Adviser (UK) (Aus)
Oilex Capital Strand Hanson Vigo Communications Citadel-MAGNUS
Ltd Limited Limited Public Relations Michael
Joe Salomon Broker Nominated Patrick Weir
Managing Colin Rowbury Adviser d'Ancona/Chris Email:
Director Email: Rory Murphy/Ritchie McMahon mweir@citadelmagnus.c
Email: colinr@cornhillcapital. Balmer Email: om
oilex@oilex.com.au com Email: patrick.dancona@vigoc Tel: +618
Tel: +61 Tel: +44 oilex@strandhanson.co omms.com 6160 4900
8 9485 20 3700 .uk chris.mcmahon@vigocom Australia
3200 2516 Tel: +44 ms.com
Australia UK 20 7409 Tel: +44 20
3494 7830 9700
UK
This information is provided by RNS
The company news service from the London Stock Exchange
END
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