Oilex Discovers Oil Shows with Oman Drilling

Oilex Ltd advises that the Sarha-1 exploration well, the first of three exploration wells that will be drilled in a continuous sequence by Oilex in the Block 56 Production Sharing Contract Area, Sultanate of Oman has reached total depth (TD) of 1,890 meters measured depth in the Cambrian Huqf Formation. The current operation is running logs.

During the past week, the well was drilled from 1,692 meters through the Huqf Formation carbonates to TD. A gamma ray and resistivity logging tool was run as part of the bottom-hole assembly near the bit and recorded information as the well was being drilled. Oil shows and anomalous resistivity values were recorded within the Huqf carbonate sequence below 1,645 meters and will be further evaluated by the logging program now in progress.

As reported previously, the primary and secondary objectives penetrated in the Permian to upper part of the Cambrian interval exhibited oil shows and increased gas readings from drill cuttings. All of the anomalous zones encountered will be evaluated by the current logging program to determine whether production testing is warranted.

Oilex serves as operator of the Block 56 Production Sharing Contract with 25% interest. Videocon Industries holds 25%, GAIL holds 25%, Hindustan Petroleum holds 12.5% and Bharat Petroleum holds the remaining 12.5% interest.

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