OEX.L Share News (OEX)

LONDON (Dow Jones)--Oilex Ltd (OEX.LN) said Tuesday it is nearing completion of the initial phase of extensive studies on the properties of the Eocene low permeability ("tight") reservoirs in Cambay Field, Onshore Gujarat, India. MAIN FACTS: -Previously Oilex had identified the potential of these tight oil and gas reservoirs which it drilled and tested using conventional techniques. -Oilex concluded that the evaluation and commercialization of these reservoirs could be harnessed using proprietary technology and expertise developed in recent years in the growing North American shale gas industry. -In Australia, 3D seismic processing studies were completed on the Company's WA-388-P block. -The permit is located in a region of increasing exploration interest, being on the same play fairway as the Pluto and Wheatstone fields. -It is close to the WA-389-P and WA-360-P permits which Woodside and Petrobras respectively are reported to have entered into farm-in agreements in 2010. -Elsewhere Oilex continues to pursue a resolution to the West Kampar PSC Joint Venture dispute. -The International Court of Arbitration of the International Chamber of Commerce found in favor of Oilex (West Kampar) Limited in its $4.6 million claim. -Oilex will now immediately pursue the enforcement of the Award to recover the amount due. -In the Timor Sea JPDA 06-103 contract area, studies were completed to assess the remaining prospectivity of this Permit. -The Designated Authority and Joint Venture are considering the future work program and its timing. -The Company's cash position at the end of the Quarter remains robust. -Total net production from existing wells in the Cambay, Bhandut and Sabarmati Fields was 2,546 barrels of oil for the Quarter (Oilex share). -Current oil production is substantially from the Miocene Basal Sand (MBS) with 25% by volume produced from the Eocene siltstones. -Shares at 0831 GMT up 0.1 pence, or 2.0%, at 6.3 pence. By Iain Packham, Dow Jones Newswires; 44-20-7842-9269; iain.packham@dowjones.com (END) Dow Jones Newswires July 27, 2010 04:33 ET (08:33 GMT)