Oilex Spuds Cambay 71 Well

Oilex reports that the Dalma Energy Rig-4 commenced drilling the Cambay-71 well in India last week after completing the move from Cambay-72. Current operation is preparing to run 95/8' casing at a depth of 605 meters.

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 planned 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 upper 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.

A well testing program will be undertaken using a workover rig when the Cambay-71 well is completed, so that both Cambay-72 and Cambay-71 wells can be tested consecutively to minimize cost.

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