Oilex Commences Gas Production from Bhandut Field in Gujarat, India

Oilex Ltd., a junior Australian oil and gas exploration and production company, announced Friday the commencement of gas production from the Bhandut Field, located onshore Gujarat, India.

The Bhandut-3 well is currently flowing at the expected stabilized rate of 0.7 million standard feet per day (MMscf/d) or 120 barrels of oil equivalent per day (boepd) through an 8/64 inch choke. Gas produced from Bhandut-3 is initially processed at the on-site production facilities and then delivered to a third party operated gas processing plant where it is further treated to the required pipeline specification. It is subsequently compressed for entry into the high pressure gas network for delivery to an end user.

Bhandut Field

Oilex is Operator and holds 40 percent equity in the Bhandut Field, with Gujarat State Petroleum Corp. (GSPC) holding the remaining equity interest. Previous drilling in the Bhandut wells intersected a number of hydrocarbon zones, some of which have been produced and are now shut in. The Bhandut-3 well is producing from a previously undeveloped sandstone at a depth of 3,314 feet (1,010 meters) at virgin reservoir pressure. This zone was flow tested by Oilex and the Joint Venture (JV) in 2013 confirming good reservoir quality with an average permeability of 124 millidarcy (mD) and gas of good quality containing 98.9 percent hydrocarbons, of which 94 percent is methane and 1.1 percent nitrogen and carbon dioxide.

As this is the first production from this individual reservoir, the production will be closely monitored to facilitate a greater understanding of its potential.

Currently the JV has approval to sell hydrocarbons from this project for 3 months pending completion and approval of field development plan.

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