Oilex Get Gas Sale Go-Ahead for Cambay-77H Well
Asia-focused junior oil firm Oilex announced Monday that it has been given the go-ahead by the Indian government for the sale of gas from its Cambay field, specifically from the Cambay-77H well.
The approval follows similar announcements in July and December 2014 when the company was authorized to sell gas from the Cambay-73 and Bhandut-3 wells respectively.
Oilex said it was now working towards putting three wells on two separate fields into production during the first half of this year. The company will be recommencing gas production from the Cambay field for the first time since the early 1990s.
Cambay-77H is the first horizontal multi-stage fracked well to be successfully production tested in India. Oilex said that test results and data from Cambay-77H have demonstrated "strong well economics".
Oiliex's joint venture for Cambay will now establish appropriate production facilities for Cambay-77H and initially connect Cambay-77H to a low-pressure pipeline grid to service the local area.
Oilex Managing Director Ron Miller commented in a company statement:
"We are very pleased to receive this endorsement from the Government of India to sell gas from Cambay-77H. The contracted price remains commercial-in-confidence, and revenue from Cambay-77H will significantly move the India assets towards our 2015 goal of cash flow positive operations. Gas demand remains strong in India and prices firm which helps cushion the recent fall in oil prices. Oilex looks forward to the next drilling campaign and having sufficient gas deliverability to consider delivery of pipeline quality gas to the high pressure grid located approximately 7 kilometers [4 miles] from the field."
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