Oilex IDs Hydrocarbons at Cambay Well

Oilex advised that at June 28, 2011 the Cambay-76H horizontal well was directionally drilled as planned to a depth of 2,596 meters.

  • Report date: June 28, 2011
  • Status Drilling: 8 ½" hole at 2,596 meters
  • Past Week's Operations
    • Drilled 8 ½" hole from 1,595 to 2,596 meters including
    • Horizontal section from 2,106 to 2,596 meters
  • Objective: Cambay Eocene "tight" reservoir Y Zone
  • Kick off point for deviation: 1,167 meters
  • Planned Total Depth (TD): Approximately 2,885 meters
  • Well duration: Approximately 35 days on a trouble free basis

All depths refer to measured depth below rig rotary table ("MD")

After kicking off from the vertical hole at 1,167 meters, the well was drilled to the horizontal landing point at 2,106 meters and the horizontal section drilled to 2,596 meters.

The Y Zone reservoir was intersected on prognosis. As anticipated, the horizontal section drilled to date in the Y Zone is characterized by log-indicated porous hydrocarbon-bearing intervals with highly elevated gas readings.

Cambay Eocene Tight Reservoirs

The Company is making progress in unlocking the potential of the Cambay "tight" Eocene reservoirs that extend across the 161 km2 Cambay Production Sharing Contract ("PSC") area in onshore Gujarat, India. The Company intends to evaluate and exploit these reservoirs using horizontal drilling and fracture stimulation technology that has been developed and proven in North America.

The Cambay-76H "proof of concept" horizontal well will evaluate the production potential of the Y Zone interval of these "tight" reservoirs. An 8 stage fracture stimulation program will be conducted and after well clean-up, it is anticipated that a long term production test will be performed to determine flow rates, quality of hydrocarbons and commercial viability.

The participating interests in the Cambay PSC are:

  • Oilex Ltd (Operator) 30%
  • Oilex NL Holdings (India) Limited 15%
  • Gujarat State Petroleum Corporation Ltd 55%
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