Oilex in the Tests the Sarha-1 Well in Oman

Oilex Ltd advises that preparations are underway to conduct Drill Stem Test (DST) #3 of the Lower Gharif Formation in the Sarha-1 well located in Exploration and Production Sharing Agreement Block 56, Oman. After a review of borehole conditions, additional cement has been squeezed behind casing to improve the isolation of the anomalous zone interpreted over the interval 1165-1185 meters (measured depth). Testing will be carried out using a downhole progressive cavity pump to optimize flow rates in the event that heavier oil is produced during the test.

Once this test has been completed, the Abraj rig will move to the Ghadaq-1 location, the second of the 3 wells to be drilled during the current exploration drilling program.

After remedial cementing operations, DST #2A was conducted over the interval 1255-1295 meters last week and recovered fluid comprising up to 90% oil at surface at variable rates using a progressive cavity pump. The results are very encouraging given the poor hole conditions and the formation damage likely to have occurred during drilling when this and the overlying Gharif Formation, the subject of DST #3, were exposed to drilling water for an extended period while attempts were made to mitigate the total loss of drilling fluids in the Huqf Formation carbonates.

Participants in the Block 56 Exploration and Production Sharing Agreement area are Oilex Oman Limited (Operator) with 25%, Videocon Industries Limited with 25%, GAIL (India) Limited with 25%, Hindustan Petroleum Corporation Limited with 12.5%, and Bharat Petroleum Corporation Limited with 12.5%.


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