Oilex Says Commercial Development of Cambay Field in Gujarat is Feasible

Australia's Oilex Ltd reported Monday the preliminary results of the flowback and production testing of Cambay-77H in Cambay Field, Gujarat, India. All proof-of-concept objectives have been achieved and the commercial development of Cambay Field using multi-stage frac technology is feasible.

Summary

• Cambay-77H was designed as a Proof-of-Concept well with a short 1,148 feet (350 meters) lateral
• Initial production over a 24 hour period of 2.03 million standard cubic feet equivalent per day (MMscfe/d), 55 percent hydrocarbon liquids
• An oil to gas ratio (OGR) of ~100 barrels per MMscf of gas in the Cambay-77H area remains valid – some 250 percent higher than extrapolated from Cambay-73
• Increased OGR adds ~40 percent revenue per MMscf of produced gas using price assumptions of $8.00/Mscf and $70/bbl for gas and oil respectively
• Total production during flowback and testing – 62.3 MMscfe
• Total operations water recovered – 23,732 barrels (88 percent) – no formation water has been identified during flowback and testing

Managing Director of Oilex, Ron Miller, said:

“Oilex is very pleased with the results of Cambay-77H flowback and test. With all the proof of-concept objectives having been achieved, a significant milestone has been reached towards creating a profitable and sustainable business. It is also a first step for India, towards improving its domestic petroleum supply by using multiple fracture treatments in horizontal wells that have transformed the energy equation in North America. Oilex is proud of its first mover position, competitive advantage and achievement in initiating development of tight oil and gas using this technology in India.”

Results

The key field results from Cambay-77H flowback and production testing are encouraging. The sustained initial 24 hour rate during flowback was 2.03 MMscfe/d, comprising 55 percent light oil/condensate with concurrent operations water production of 1,867 barrels per day. Flowing wellhead pressure was 1,261 psig. Rates are presented in energy equivalents converted at 5,800 scf of gas per barrel of oil because the well was originally designed as a gas and condensate producer.

Total hydrocarbon production was 43 MMscf of gas and 3,372 barrels of light oil/condensate (sold to a local refinery), giving an energy equivalent figure of 62.3 MMscfe. The maximum liquid hydrocarbon to gas ratio was 349 barrels/MMscf with an average of 77 barrels/MMscf, likely governed by the well bore tubular size impacting the flow regime.

A total of 27,631barrels of operations water (frac water and coil tubing operations water) was used with 23,732 barrels, or 88 percent recovered. The maximum recovery rate was 3,101 barrels of water per day and no formation water was identified during flowback and testing.

Use of Data

Oilex has the first, and currently the only model to be successfully calibrated using actual production and compositional data from a multistage frac’d horizontal well in the Cambay Basin.

The flowback and production test data has been used to analyse the performance of Cambay-77H, refine the calibration of the production model used to assess Y zone deliverability, predict ongoing recovery of oil and gas from Cambay-77H, review preliminary well designs and generate forecast “type curves” for the next drilling campaign.