Oilex Reveals Preliminary Test Results at Pendalian-3

Pendalian-3 - West Kampar PSC - Indonesia

Oilex advises that following the perforation of the interval 460- 464 & 466 - 471 meters below KB and a brief period of natural flow of 330 API crude oil, swabbing operations have now been completed at Pendalian-3 to determine the flow potential for Drill Stem Test (DST) #3. Downhole pressure gauges are being recovered before moving to DST #4 to be conducted over the interval 279 - 292 meters below KB.

The operator, Sumatera Persada Energi, has provided a preliminary estimate of the Productivity Index for this zone of 2.32 barrels per day per psi measured from the test which, given an estimated reservoir pressure of 569.16 psi, indicates that the maximum flow potential from this well is 1285 barrels per day and suggests that production rates in the range 700-900 barrels of oil per day are possible once artificial lift is installed. Further analysis of down hole data will be carried out to confirm these preliminary results.

Note that due to the shallow depth of the reservoir and low volume of associated gas, production from the Sihapas Sandstone oilfields in adjacent areas is carried out by installing beam pumps from inception to provide artificial lift.

Initial flow rates confirm the excellent Sihapas Sandstone reservoir quality interpreted from wireline logs for this 9 meter perforated interval.

Participants in the West Kampar Production Sharing Contract are Sumatera Persada Energi as operator with 55%; and Oilex with 45%.


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