OEX.L Share News (OEX)

(ShareCast News) - Indian-focused gas producer Oilex has started a workover programme on its Cambay project ahead of a planned relocation of the rig and as part of its efforts to become cashflow-positive in India in 2015.The group said the workover campaign on its Indian project, aimed at removing and cleaning the production tubing, has begun with the mobilisation of a rig to the producing Cambay-19z well, the first of four workover wells to be deployed in different locations across the site.Oilex expects the workover programme to be completed before it drills the next two wells on site, Cambay-78H and Cambay-80H, adding that while production remains limited whilst the group carries out study on the reservoir, the Cambay-73 well is continuing to produce gas.Upon completion of workover, the Cambay-77 well will be connected to the pipeline currently serving the Cambay-73."The commencement of field activities to boost production through the workover campaign is another milestone towards our goal of being operationally cash flow positive in India before the end of this calendar year," the group said.Oilex added the approvals tendering and cost recovery process was nearing completion for the 2015/16 drilling campaign.Meanwhile, the gas producer said field construction at the Bhanut field was roughly 40% completed and was expected to be completed in November, when it is expected to produce 100-130 barrels of oil equivalent per day."The gas market in India remains robust driven by market fundamentals and it is important to capture the commercial benefit of lower contractor service prices currently prevalent in the market," the company said.Oilex shares were down 10.80% to 1.36p at 1528 BST on Wednesday.