Milling Operations Completed at Cambay-77H Well in Cambay PSC in Gujarat

Oilex Ltd. reported Monday that plug milling operations have been completed at Cambay-77H well in the Cambay Production Sharing Contract (PSC) in Cambay Basin, Gujarat, India. Cambay-77H started unaided controlled flowback with gas observed at surface while successfully milling out 4 isolation plugs, including 1 that failed to seal properly.

Since the previous update July 7:

  • The isolation plugs were successfully milled
  • 8 fractures into the reservoir were connected to the well bore
  • The well started to flowback unaided under controlled conditions during milling
  • Gas flowed to surface during milling operations
  • Production testing equipment was positioned and commissioned

During milling operations Cambay-77H exhibited strong flowback and clean-up characteristics that were controlled at surface. Flowback and clean-up will continue under controlled conditions to minimize the risk of damage to the fractures. The coiled tubing unit will remain on location for several days as a precautionary measure during the initial flowback and cleanup.

Hydrocarbons produced with the returning frac fluids will be monitored and all water based frac fluids are being stored in a purpose built pit at site. Monitoring these fluids will provide valuable information regarding the quality of the 8 fracture stimulations. As soon as sufficient well stability is achieved, the production test will start and the deliverability of the reservoir will be quantified.

As previously announced the Cambay-77H logs compare favorably to the Cambay-73 vertical well, which produced from the Y zone at ~1 million standard cubic feet per day or MMscfd (plus condensate) and is located approximately 0.62 miles (1 kilometer) from Cambay-77H. Cambay-73 also commenced flowback unaided, strengthening the correlation between the wells for the purposes of an independent reserve assessment.

Announcements regarding production testing will be dictated by the well response.

Managing Director of Oilex, Ron Miller, said;

“We are very pleased that the milling operations were successful and all the fractures are now connected to the wellbore. Importantly, the elevated over-pressure of 5,000psi and the strong flow back characteristics are very positive results. Oilex is looking forward to commencing of the production testing after sufficient frac fluids have been recovered from the well. Further analysis of the fracture stimulation program and production data will be needed to quantify the reservoir deliverability. It has been a long journey back from Cambay-76H and Oilex looks forward to a bright future, focused on value for its shareholders and methodical in its delivery.”


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