Oilex Kicks Off Second Drilling Phase in Oman, Spuds Sarha-2

Oman, Block 56
(Click to Enlarge)

Oilex Ltd. has advised that the Sarha-2 well spudded on September 5, 2008. The well is the first in the second phase of drilling that comprises a continuous sequence of 4 wells in Block 56 Exploration and Production Sharing Agreement (EPSA) area, Sultanate of Oman.

The well will initially be drilled by the Abraj Rig 204 as an exploration and appraisal well to evaluate the same
oil bearing zones that were intersected in Sarha–1 discovery well. On conclusion of the exploration phase of
drilling, the well will be drilled horizontally into the oil zone tested at the nearby Sarha-1 well and used for
extended production testing. Oil production rates in the range 300-700 barrels per day are anticipated.

Drilling operations in the exploration phase are planned to take 17 days to reach total depth at 1,650 meters.


The Block is located on the eastern flank of the South Oman Salt Basin, an area which has already seen
significant exploration success and subsequent production. Several of the fields in this area hold over 500
million barrels of oil in place. Most of these fields were discovered by Petroleum Development Oman (PDO)
during the last 20 years. The pipeline network from those producing fields in the main part of the South
Oman Salt Basin is only about 30 km to the west of the Sarha wells.

Oilex has been pursuing an aggressive exploration program in Oman since the award of Block 56 to the joint
venture in July 2006. Three wells, two of which encountered oil, have been drilled and the acquisition of
1,000 km of 2D seismic and extensive reprocessing of existing 2D and 3D seismic data has been concluded.
A 3D seismic program covering 400 km2 is planned to commence in November 2008.

Sarha-2 Objectives

The well is planned to evaluate proven Permo-Carboniferous reservoir intervals in the Gharif and Haima
formations which were not fully evaluated at Sarha-1 due to hole problems. These are major productive
horizons across Oman. Following the evaluation of these zones, the well will be plugged back and a 500
meter horizontal section will be drilled in the Al Khlata formation and completed for production to evaluate the
zone which tested oil at the Sarha-1 exploration well. This extended production test is planned for a minimum
period of 120 days with produced oil trucked and sold to a nearby PDO receiving station.

Results from this production test will be used for planning the full field development of the Al Khlata oil zone.

Future Program

Sarha-2 will be followed by 2 further exploration wells (Prospects D and J) which will evaluate structural
features similar to the Sarha discovery and neighboring fields in Block 6. An additional exploration well
(Prospect A) will follow as the last well in the current sequence and will investigate a much larger, high relief
feature in the central Block 56 area. Formal naming of the prospects is to be confirmed by Oman government


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