Flow-Back Operations in Progress at Cambay-77 Well in Cambay PSC in Gujarat

Oilex Ltd announced Monday that Cambay-77H well in Cambay Production Sharing Contract in Cambay Basin, Gujarat, India continues to produce crude oil and frac water and ~55 percent of the water used to stimulate the well has been recovered. Light crude oil continues to be recovered and most has been transported to a nearby refinery for sale. Gas produced concurrently with crude oil during well flow-back continues to be flared to ensure safety of all well-site personnel.

No proppant has been recovered at surface subsequent to the milling operations and initial well bore clean out. No evidence of formation water has been seen at surface during the flowback and this is interpreted to support Oilex’s hypothesis that formation water production is not occurring.

The well planning including flow-back and clean-up was predicated upon gas and condensate and the recovery of crude oil and gas may influence the duration required for Cambay-77H to clean-up prior to commencement of any production testing. Samples of the oil, gas and water have been collected for laboratory analysis. These analyses will assist in determining the fluid properties being recovered from the well.

During flow-back operations the following activities have been completed which have necessitated shutting in the well or limiting flow:

• Change of frac tree to the standby frac tree because of leak issues
• Completed two runs to the toe of the well with the coiled tubing unit
• Preliminary build up surveys of wellhead pressure

The coil tubing unit, which was retained at Cambay-77H site as a precaution, has now been demobilized along with other ancillary equipment, reducing the daily operating costs. Oilex will advise the market of a stabilized flow rate via a production test once frac fluid return and clean-up operations have been completed.

Managing Director of Oilex, Ron Miller, said;

“The ongoing recovery of light crude oil during flow-back operations is particularly welcome. Flow-back started very strongly and continues at a steady pace, although the shut-in periods for changing the frac tree and checking the well bore have extended the duration. As this is the first multi-stage fracture stimulated well to flow-back in the Cambay Basin, there is no benchmark for comparison. Oilex looks forward to commencing the production testing after sufficient frac fluids have been recovered from the well and the flow has stabilized.”