Oilex Resumes Cambay Testing in India

Cambay Field in the Gulf of Cambay
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Oilex Ltd, operator for the Cambay Field Joint Venture, said that the re-entry and test program for the well Cambay-72 in Cambay Field, onshore Gujarat, India, will resume this week.

Cambay-72 was drilled in September 2006 and its location was selected from maps made prior to the acquisition of the 3D seismic survey. The primary target was the Oligocene OS II sandstone potential oil reservoir, estimated to be about 16 meters (gross) thick at this location. Good shows of oil were recorded while drilling and subsequently confirmed by wireline logs. The interpretation of the 3D seismic data at the OS II marker over the Western High area confirms a similar depth to structural closure.

Indications of oil and gas in poorer quality reservoir were also recorded from the deeper, over-pressured Eocene EP IV interval. Pressure and fluid data from this unit were acquired in a test program that was conducted in February 2007.

The Cambay Field Joint Venture has approved a program to conduct a cased hole test of the Oligocene OS II sandstone, the primary objective of the Cambay-72 well.

Operations - The John Energy 50MT work-over rig has been mobilized to the Cambay-72 location and is currently rigging up preparatory to re-entering the well and initiating testing operations.

Operations Forecast - Following wireline logging operations to confirm cement and casing integrity, a completion assembly will be run, surface equipment installed and the interval 1514 -1520 meters perforated. Reservoir fluids will then be allowed to flow into a surface separator while the production potential and fluid properties of the OS II reservoir are assessed.

Participants in the Cambay Production Sharing Contract are:

Joint Venture Party                           Participating        
Oilex (Operator)                              45%                  
Gujarat State Petroleum Corporation Ltd       55%

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