Oilex Ltd India Operations Update (6587J)
December 21 2015 - 2:00AM
UK Regulatory
TIDMOEX
RNS Number : 6587J
Oilex Ltd
21 December 2015
ASX Announcement
21 December 2015
ASX: OEX
AIM: OEX
India Operations Update
l Cambay-77H produced 715 boe during first 10 days, 2.7MMscf gas
and 252 bbls of condensate
l Cambay-77H gas sales averaged 0.267MMscfd with a maximum peak
rate of 0.572MMscfd
l The Bhandut-3 well and the associated gas production
facilities are ready for start-up
Oilex Ltd is pleased to provide the following update:
Cambay-77H
Since restarting production, the Cambay-77H initial average
production rate for 10 days (IP10) was 71.5boepd. Although demand
for gas fluctuates on a regular basis, as anticipated, production
from Cambay-77H has gradually increased from 51boepd as previously
announced on 7 December 2015. The well continues producing through
a 1/64 inch choke and the average tubing head pressure for the same
period was 2,400psig. The condensate gas ratio (CGR) increased to
an average of 92.5bbls/MMscf from the previously reported
55bbls/MMscf. It is expected that with further production, the CGR
may decrease to the anticipated 40-50bbls/MMscf as the tubing head
pressure decreases.
Gas is sold into the low-pressure market in the immediate
vicinity of the field. The well continues to meet the local low
pressure market including a peak demand rate of 0.500MMscfd for 1
hour that occurs twice daily. Further increases in the overall
market will be dependent on successful marketing efforts that are
currently underway.
Ongoing production from Cambay-77H will allow a fuller
understanding of its deliverability potential from the Y zone and
the longer term CGR. This production data will be used to update
the numerical simulation model created as part of the Independent
Resource Assessment completed by RISC in April 2015 (refer ASX
announcement dated 16 April 2015).
Cambay 73
Cambay-73 remains shut in, as Cambay 77H can meet current demand
from the low-pressure market.
Bhandut Field
The Bhandut-3 well and the associated gas production facilities
are ready for start-up (see attached photographs). The gas buyer is
responsible for construction of a flowline to deliver the gas for
further processing. This work has commenced and is estimated to be
complete in early January 2016 at which time Bhandut-3 will
commence commercial production. It is planned that Bhandut-3 will
start-up at 0.7MMscfd and its performance will be closely
monitored.
Joint Venture Matters
Oilex is continuing to work closely with our joint venture
partner via regular meetings to resolve the outstanding receivable
amount owed to the joint venture, and rescheduling the drilling of
Cambay-78H and Cambay-80H wells.
Managing Director of Oilex, Ron Miller, said;
"Cambay continues to deliver positive results with Cambay-77H
gas production gradually increasing as the low pressure gas market
demand permits. While the higher than anticipated CGR at present is
positive, ongoing production data is necessary to determine its
sustainability. Another major milestone for 2015 has been achieved
with Bhandut-3 and the gas production facilities ready for
start-up. Oilex continues to focus on growing production and
cashflow in India underpinned by a significant independently
assessed Reserve and Resource base."
For and on behalf of Oilex Ltd
Ron Miller
Managing Director
For further information, please contact:
Investor Enquiries Nominated Adviser Media Enquires
Oilex Ltd Strand Hanson Limited Vigo Communications
Ron Miller Nominated Adviser Public Relations UK
Managing Director Rory Murphy /Ritchie Patrick d'Ancona /
Email: oilex@oilex.com.au Balmer Chris McMahon
Tel: +61 8 9485 3200 Email: oilex@strandhanson.co.uk Email: patrick.dancona@vigocomms.com
Australia Tel: +44 20 7409 3494 chris.mcmahon@vigocomms.com
UK Tel: +44 20 7016 9570
UK
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