Oilex Updates on Cambay-77H Well Drilling in Cambay PSC in Gujarat

Oilex Ltd revealed Tuesday that Cambay-77H well drilling operations in the Cambay Production Sharing Contract (PSC) in Cambay Basin, Gujarat, India successfully completed setting and cementing the 9.625 inch casing at approximately 5,423 feet (1,653 meters) Measured Depth (MD). The casing was set in a suitable formation to ensure well integrity whilst drilling the anticipated over-pressured target reservoir section. An integrated stress test of the rig systems was successfully completed to ensure operational integrity prior to drilling the final around 85 feet (26 meters) of the intermediate hole section and setting casing. The condition of the wellbore subsequent to the rig repair period was found to be very good.

The rig is currently preparing to drill ahead in 8.5 inch hole into the target reservoir section. Elevated gas readings are anticipated through the target formation to Total Depth (TD).

Cambay-77H is located adjacent to the Cambay-76H horizontal well that underwent a successful multiple staged fracture stimulation programme along its 2,076 feet (633 meter) lateral section in 2012. However, it was suspended prior to testing due to downhole mechanical problems. Prior to suspending the well, gas and condensate flowed to surface during well control operations.

The Cambay-77H well design incorporates all of the key operational and technical learnings that have arisen from a forensic engineering analysis of Cambay-76H by multiple expert parties. A shorter horizontal lateral section (1,148 foot or 350 meter) coupled with a conventional “plug and perf” method for fracture stimulation is expected to facilitate the primary goal of the well – recording hydrocarbon flow information at surface during a production test.

As previously disclosed, Oilex intends to inform the market about progress during drilling operations on a milestone basis as indicated below.

  • Setting and cementing of the 13.375 inch casing at approximately 1,935 feet (590 meters) MD
  • Setting and cementing of the 9.625 inch casing at approximately 5,413 feet (1,650 meters) MD
  • Completion of drilling operations at well TD, approximately 7,732 feet (2,357 meters) MD
  • Setting and cementing of the 4.5 inch production casing
  • Completion of mobilization of the fracture stimulation spread to site
  • Completion of the fracture stimulation program
  • An announcement in relation to flow back and production testing will be dictated by the well response to the stimulation program

A time gap between setting and cementing the 4.5 inch production casing and completion of mobilization of the fracture stimulation spread is anticipated in order to minimize potential standby charges associated with demobilization of the drill rig from site.

Managing Director of Oilex Ron Miller said;

“Although drilling operations have been delayed due to a substantial system failure on Essar Land Rig #4, the 12.25 inch hole above the reservoir is now complete and secure behind casing. The successful integrated stress test of the rig systems is reassuring and we now look forward to entering the target reservoir as part of the final hole section including the 1,148 foot (350 meter) horizontal length which will be fracture stimulated.”

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