Oilex Spuds Cambay-74 Well in India, Drilling Ahead in Oman

Cambay Field, India
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Oilex has advised that drilling and testing operations continue in the Company's assets in both India and Oman.

At Cambay-19Z in India, a cased hole test (DST #3) of the EPIII and EPIV primary reservoir flowed oil and gas to surface at unstabilized intermittent rates ranging from 20-55 barrels of oil with associated gas. With this encouraging initial result, planning of a suitable fracture simulation program is underway for this interval in Cambay-19 as the next step in the process of establishing the maximum flow rate from this interval. The workover rig is now moving to the Cambay-73 location to fracture stimulate and test the EPIII and EPIV zone in this well.

The Cambay-74 well spudded on October 3 and is currently drilling ahead at a depth of 403 meters.

In Oman, a horizontal section in the Sarha-2 well is being drilled in the oil bearing Al Khlata reservoir at a measured depth (MD) of 1710 meters in preparation for an extended production test. 250-300 meters of sandstones with excellent oil shows have been penetrated. A cased hole test (DST#1) of the shallower Rahab sandstone was not conclusive; the production potential of this not previously recognized zone will be reviewed once Sarha-2 core data has been analyzed.

Cambay-19Z appraisal well - India

  • Objectives: Primary: Oligocene OS II - gas.
  • Eocene EP III and EP IV - gas / oil.
  • Basal EP IV - oil.
  • Status: Suspended pending stimulation (fraccing).
  • Operations: Mobilizing workover rig to Cambay 73 location.

Comment: Although continuous slugging of oil and gas at surface has prevented the determination of a stabilized flow rate from the EPIII/IV reservoir, the measurement of average rates of up to 55 bopd during the test period provides encouragement for the commercial development of this reservoir. Fracture stimulation carried out in this unit previously indicate that a substantial gain in rate can be achieved with stimulation (4-5 times unstimulated rate) and further enhancement could be achieved by multiple fracture stimulations in a horizontal well.

Cambay-74 appraisal well - India

  • Objectives: Primary: Oligocene OS II - gas.
  • Eocene EP III and EP IV - oil.
  • Basal EP IV - oil.
  • Secondary: Miocene Basal Sandstone - gas.
  • Deccan Fractured Basement - oil.
  • Status: Current depth 403 meters.
  • Operations: Drilling ahead in 17 1/2' hole to section total depth at 600 meters.

Comment: Cambay-74 well is located on the western flank of the Cambay high and will test all the identified reservoir intervals in a location where early wells flowed oil and gas. The well will particularly target the better sandstone development in the basal EPIV reservoir indicated by existing well data. This zone tested oil at rates up to 200 barrels per day in the recently drilled Cambay-19 well.

Sarha-2 appraisal well - Oman

  • Objectives: Primary: Al Khlata Formation.
  • Status: Current Depth : 1,430 meters.
  • Operations: Drilling horizontal production well.

Comment: Results from the cased hole test results of the Rahab sandstone interval from 1290 meters to 1305 meters were not conclusive. Core taken in the Rahab interval is currently being analyzed to confirm the reservoir and oil properties, noting that oil was circulated to the surface while this interval was being drilled.

Drilling of the horizontal production interval in the Al Khlata sandstone is continuing. To date, 250-300 meters of sandstones with excellent oil shows have been penetrated.

Participants in the Oman Block 56 Exploration and Production Sharing Agreement

Joint Venture Party Participating Interest

  • Oilex Oman Limited (Operator) 25%
  • Videocon Industries Limited 25%
  • GAIL (India) Limited 25%
  • Hindustan Petroleum Corporation Limited 12.5%
  • Bharat PetroResources Limited 12.5%

Participants in the Cambay Production Sharing Contract are:

Joint Venture Party Participating Interest

  • Oilex Ltd (Operator) 30%
  • Oilex NL Holdings (India) Limited (100% owned by Oilex 15% Ltd)
  • Gujarat State Petroleum Corporation 55%



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