Cambay Well Disappointment for Oilex

Oilex Ltd provides the following update on operations at the Cambay-76H horizontal well in the Cambay Field, onshore Gujarat, India.

As previously announced, Oilex has been conducting operations to recover and replace damaged drill pipe and recovering milling assemblies from down hole. During these operations while attempting to pull out of the well with the milling assembly the drill pipe has parted on three separate occasions at 925 feet (282 meters) (corrected from 600 meters as previously reported), 7,526 feet (2,294 meters) and, most recently, at 3,205 feet (977 meters).

Prior to the last run in hole, the drill pipe was inspected at site in accordance with American Petroleum Institute Guidelines using non-destructive testing techniques and the drill pipe that was last run in hole was therefore understood to have good integrity. However, the latest failure at 3,205 feet (977 meters) brings into question the fundamental condition of the drill pipe.

As a direct consequence of the apparently poor integrity of the drill pipe and the potentially adverse consequences of continuing to use this equipment, the Joint Venture has decided to suspend operations until a better understanding is reached and the condition of the well bore is reviewed. An investigation including laboratory testing of drill pipe material is being undertaken to determine the cause of these failures.

Commenting on the current status of the Cambay Project and the Cambay-76H well, Bruce McCarthy, Managing Director said: "Clearly the current situation is disappointing. However, the Cambay tight reservoir project - with very substantial contingent resources independently certified by NSAI - has exciting potential for oil and gas from the overpressured Eocene reservoirs. The potential of the project is not diminished by the mechanical problems with the well that we have experienced. A lot of very important information has been gained from the well albeit that we have not yet been able to flow test it. The high energy in the reservoir exemplified by the high mud weights to control the well and flows of hydrocarbons and stimulation fluids to surface during recent operational phases at good pressure are highly encouraging. The intent is to resume operations, possibly as part of an expanded work program at the earliest opportunity."

The participating interests in the Cambay PSC are:

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


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