Oilex Updates on Operations at Cambay, Bhandut Fields in India

Australia's oil and gas exploration and production company Oilex Ltd. provided Wednesday the following update about its upstream operations at the Cambay and the Bhandut Fields in India.

Cambay Field

The workover campaign has started with the mobilization of the rig to Cambay-19z, an oil producer from the Eocene (EP IV) formation. Cambay-19z is located approximately 0.9 mile (1.4 kilometers) to the west of Cambay-77H in Gujarat. The workover includes removal and cleaning of the production tubing and repositioning the downhole pump to improve well deliverability. Subsequent to Cambay-19z, the rig will move to 1 of 4 candidates;

  • Cambay-20, an oil producer currently on self-flow that requires a downhole pump to improve deliverability
  • Cambay-70 located adjacent to Cambay-77H pad, a gas and oil producer from Eocene/MBS formation
  • Cambay-60 – tested gas and condensate from OSII formation but never put into production
  • Cambay-77H – to remove the frac tree, install production tubing and tree

Delivery of components from overseas will determine the sequence in conjunction with optimizing rig time. In addition, assessment of other wells continues such that the portfolio of workover candidates is continually hi-graded. Completion of the workover program is expected before commencement of drilling operations at Cambay-78H or Cambay-80H.

Cambay-73 continues to produce gas for the low pressure market in the immediate vicinity of the field at ~20 barrels of oil equivalent per day (boepd). Currently, the well is shut-in for a pressure build up study as part of ongoing reservoir engineering studies to understand better the Y zone reservoir. As announced on Aug. 25, subsequent to the installation of a production tree and production tubing, Cambay-77H will be connected to the temporary pipeline to service the low pressure market via Cambay-73, without having to construct a dedicated low pressure production facility at the Cambay-77H site.

Cambay-60 is completed in the Oligocene (OS II) formation, a conventional reservoir, and may be connected to the low pressure gas market via Cambay-73 facilities. The combined production from Cambay gas and condensate wells, via Cambay-73 facilities, is anticipated to be ~130 to 170 boepd after the initial phase of the workover program is complete.

The contracting and procurement process for the 2015/16 drilling campaign is nearly complete and final approvals are being sought to award the major contracts and take advantage of the new pricing paradigm. An estimated 60-90 days is required for drilling rig mobilization, and although spudding of the first well was scheduled for 4Q 2015, this may slip into 1Q 2016.

The JV is discussing the best opportunity to integrate Cambay-77H production data with the Cambay-78H and 80H drilling campaign and at the same time maximize the opportunity to secure contracting services at competitive rates in the current low oil price environment. Oilex will inform the market should any material change to the Management Committee approved 2015/16 work program and budget occur. The Company is continuing discussions with its joint venture partner in order to resolve the outstanding issues and recover payment of the outstanding amounts related to Cambay 77H as referred to in the Company’s recent financial report.


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