Australia-listed Oilex Ltd. revealed Monday that it is completing a detailed working plan to unlock the potential multi trillion cubic feet (Tcf) gas resource in the onshore Cambay Block in Gujarat, India.

The firm said results to date support a vertical well targeting recovery of core from the Eocene siltstone (EP-IV or Y Zone). A vertical well will seek to obtain core samples from the EP-IV Zone reservoir for drill and fraccing optimization studies, essential prior to drilling a horizontal extension for potential later fraccing and exploitation of the Eocene siltstones. Such a well will also have the potential to test the shallower, productive, OS-II conventional reservoir or may be later used to frac and test the EP-IV based on results of the core.

"The detailed planning for this well is still being finalized and is subject to JV/Budget approvals. This approach allows the Company to take advantage of the lower cost vertical well drilling rates in India at present," Oilex said in a press release.

Meanwhile, the firm, with cash resources of approximately $4.7 million (AUD 6.3 million), continues to engage with its joint venture partner Gujarat State Petroleum Corp. (GSPC) to resolve outstanding cash calls and gain approval of the 2016/2017 work program and budget. The resolution of these matters is essential for Oilex to extract maximum value from the Cambay Field. While the working plans for the field are being finalized and approved, Oilex as operator, continues to bear the ongoing costs of the joint venture.

"Last week’s agreement with Zeta Resources Limited to end legal proceedings between the parties has provided Oilex with a clearer path forward and was a key priority for us. The revitalized management team can now gather momentum on the path to the potential development of Cambay that reflects what was learned from the previous wells. We look forward now to resolving issues with GSPC and progressing work at Cambay," Managing Director said in a media release.

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