Rig Prepares to Drill Cambay-77H Well in Gujarat in Cambay PSC After Repair

Oilex Ltd reported Monday that Essar Land Rig #4 has been repaired and is operational as of April 4. The rig is currently pulling out of hole (POOH) on Cambay-77H in Cambay Production Sharing Contract in Cambay Basin, Gujarat, India to check the drill string components. Once these are checked and serviced, the rig will return to drilling operations at 5,336 feet (1626.5 meters) measured depth (MD) and drill ahead to the selected casing point of 5,423 feet (1653 meters) MD.

Cambay-77H is located adjacent to the Cambay-76H horizontal well that underwent a successful multiple staged fracture stimulation (frac stim) program along its 2,076 feet (633 meters) lateral section in 2012. However, it was suspended prior to testing due to downhole mechanical problems. Prior to suspending the well, gas and condensate flowed to surface during well control operations.

The Cambay-77H well design incorporates a 1,148 foot (350 meter) lateral section coupled with a conventional “plug and perf” method for frac stim. The frac stim program consists of four stages with two fractures started from each stage. This completion is expected to facilitate the primary goal of the well – recording hydrocarbon flow information at surface during a production test.

As announced March 7, progress on Cambay-77H will be released on a milestone basis as indicated below:

• Setting and cementing of the 13.375 inch casing at approximately 1,935 feet (590 meters) MD
• Setting and cementing of the 9.625 inch casing at approximately 5,413 feet (1,650 meters) MD
• Completion of drilling operations at well total depth (TD), approximately 7,732 feet (2,357 meters) MD
• Setting and cementing of the 4.5 inch production casing
• Completion of mobilization of the fracture stimulation spread to site
• Completion of the fracture stimulation program
• An announcement in relation to flow back and production testing will be dictated by the well response to the stimulation program

A time gap between setting and cementing the 4.5 inch production casing and completion of mobilization of the fracture stimulation spread is anticipated in order to minimize potential standby charges associated with demobilization of the drill rig from site.

Managing Director of Oilex, Ron Miller, said;

“Although the mechanical breakdown was unfortunate, the rig has been repaired within the anticipated time and the well bore appears to have remained in good condition. Oilex and Essar have worked closely together during the intervening period to inspect all rig systems and rectify any faults that may have impeded future operations to finish Cambay-77H. Operational activities to date have been completed in line with estimated budget durations. We look forward to completing this hole section and running the 9.625 inch casing before drilling ahead into the reservoir section.’’