Oilex Logs Pay at Cambay-72

Cambay Field in the Gulf of Cambay
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Oilex reports that the Dalma Energy Rig-2 was released from the Cambay-72 well after running casing and suspending the well for testing of oil and gas bearing horizons. The testing program will be undertaken using a workover rig during October, when the Cambay-71 well is completed, so that both wells can be tested consecutively to minimize cost.

Cambay-72 Interim Results - Cambay-72 intersected hydrocarbons at the level of the primary Oligocene and secondary Miocene and Eocene objectives. The well logs indicate the likelihood of a significant column of gas in reservoir sandstone of apparently excellent quality at the shallower Miocene objective for which no estimate of the likely resource volumes has been calculated to date. The data collected from Cambay-72 generally confirm the estimates of possible resource for the OS-II and EP-IV levels that were published previously and these data are now the subject of detailed evaluation in preparation for the testing program.

Cambay-71 - The Cambay-71 well is located on the flank of the northern culmination of the Western High structure about 800 meters to the northeast of Cambay-72 and is expected to intersect a geological section similar to Cambay-72. The well is expected to take 8-11 days to reach the planned total depth (TD) of 1600m.

The primary reservoir objective is the Oligocene sandstone (OS II) and the secondary objectives are at Miocene and Eocene levels. These sandstone reservoir units are proven producers in fields immediately to the north and south of Cambay Field. Oil is being produced on the Western High at low rates on an intermittent basis from wells that have suffered formation and well bore damage in the past.

Resource estimates for two potential reservoir units (Oligocene OS II and Eocene EP IV) were published in May 2006 and again with the release relating to the commencement of Cambay-72.

Participants in the Cambay Production Sharing Contract ('PSC') are Oilex as operator, Gujarat State Petroleum Corporation and Niko Resources.


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