Oilex Completes Stage 1 Fracture Stimulation at Cambay-77H Well in Gujarat

Oilex Ltd. announced Wednesday that Stage 1 fracture stimulation (frac) at Cambay-77H Well in the Cambay Production Sharing Contract (PSC) in Cambay Basin, Gujarat, India has been successfully completed. Subsequently, Cambay-77H started unaided flowback with indications of gas at surface within 24 hours while other operations were ongoing.

Since the previous announcement June 24:

  • Stage 1 Micro frac and Data frac were completed
  • Stage 1 was treated with a total of ~6,000 barrels of frac fluid and ~136 tons of sand
  • Elevated bottom hole pressure of 5,000psi was measured
  • The well started to flowback unaided and gas was detected at surface shortly after Stage 1 frac
  • 2 isolation plugs were set between Stage 1 and 2 because the first failed to seal
  • Stage 2 perforations were successful completed

Subsequent to Stage 1 activities, gas was detected at surface and elevated overpressure of ~5,000psi was measured indicating a pressure increase of 670psi. The original reservoir pressure of ~4,330psi was interpreted from the micro frac program. This is consistent with Cambay-76H as highlighted in the Quarterly Report to Shareholders Sept. 30, 2012.

During the system wide pressure test to 9,300psi prior to the Stage 2 frac, a leak developed in the “frac tree”. The decision was taken to replace the faulty component(s) with spare components pre-positioned at the well site, before proceeding further with fracture stimulations. Whilst these operations are complex and are currently in progress, they are essential to maintaining the philosophy of risk minimization.

An announcement will be made when further operations resume.

Managing Director of Oilex, Ron Miller, said;

“We are pleased with the initial response of the well to “fraccing” after Stage 1. Importantly, the elevated over-pressure of ~5,000psi appears to be a very positive result. The delay associated with changing frac tree components is unfortunate but has been partially mitigated. Oilex looks forward to re-commencing frac ops as soon as possible followed by the flowback and clean-up in a safe manner for all personnel."


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