Oilex Continues Drilling, Testing at Sarha, Cambay Wells

Oilex has advised that drilling and testing operations continue in India and Oman.

In Oman, Sarha-2 is drilling ahead at 1,040 meters measured depth (MD) after reaching total depth of 1,924 meters MD in the pilot hole. A cased hole production test is now planned for a shallower 12 meter oil sand above the Al Khlata Formation that was not encountered in Sarha-1 before drilling the 500 meter horizontal section in the Al Khlata oil zone.

In India, Cambay-73 has been cased and suspended. A decision on fracture stimulation and further testing will be made after evaluation of the relevant data.

At Cambay-19Z, the rig is preparing for a cased hole test (DST #3) of the EPIII and EPIV primary reservoir zones. The results of the cased hole test (DST #2) of zones within the basal EPIV which was conducted during the week are being evaluated.

Sarha-2 is drilling at a high angle well as the well trajectory is set up to drill a 500 meter horizontal section for an extended production test of the Al Khlata oil zone. Once casing has been run at the 'heel' of the horizontal section, a cased hole test is planned for an interpreted 12 meter oil sand intersected above the Al Khlata. This test is designed to confirm the inferred excellent reservoir characteristics of this sand and to determine the reservoir fluid properties.

Cambay-73 has been cased and suspended pending a final decision on the completion strategy for this well which may include fracture stimulation of oil and gas bearing zones. The rig is in the process of moving to the Cambay-74 location. There is some potential for delay due to heavy monsoonal rains.

Preparations are underway to test a total of 25 meters of the EPIII and EPIV reservoir where positive indications of hydrocarbons have been interpreted from logs. Data acquired during the Basal EP IV cased hole test program (DST #2) are being evaluated to prepare a final completion strategy for this well which may include a fracture stimulation of the zones interpreted to be oil bearing.

Participants in the Oman Block 56 Exploration and Production Sharing Agreement are:
 

Joint Venture Party Participating Interest
 

• Oilex Oman Limited (Operator) 25%
• Videocon Industries Limited 25%
• GAIL (India) Limited 25%
• Hindustan Petroleum Corporation Limited 12.5%
• Bharat PetroResources Limited 12.5%

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%