Oilex Gets Feet Wet with Cambay-19Z Test Well

Oilex announced that current Indian operations are drilling ahead to the Eocene EP III and IV primary objectives after setting 9 5/8' casing. A significant amount of time was spent during the past week in overcoming well bore problems related to overpressured gas bearing formation and the casing ultimately was cemented in place at 1,470 meters, 280 meters higher than planned for this well.

The evaluation of the wireline logs over the Basal Miocene and Oligocene OS II (secondary objectives in this well) intersected at 1,505 meters and 1,545 meters respectively indicates the presence of about 9 meters of gas-bearing pay in these sandstones that are of good reservoir quality, each with about 25% average porosity. The Cambay-19Z well is primarily designed to test the Eocene EP III and IV reservoirs on the Cambay Western High area where hydrocarbons have been identified in adjacent wells. The well will then be deepened to explore the fractured Deccan Basalt objective and overlying potential reservoir horizons to a total depth of about 2,350 meters.

Participants in the Cambay Production Sharing Contract are operator Oilex with 30%, Oilex NL Holdings (India) Limited (100% owned by Oilex) with 15% and Gujarat State Petroleum Corporation with 55%.