OEX.L Share News (OEX)

(Sharecast News) - Exploration and production outfit Oilex told investors on Tuesday that the 2019-20 work programme and budget for its Cambay asset were "well advanced" and now included the drilling of two vertical wells.Oilex plans to prioritise testing the drilling and stimulation recommendations from a study on zone surrounding Cambay, with any early production set to utilise existing processing and storage facilities.If successful, a larger drilling programme will follow, with the aim of aggregating sufficient production volumes to connect to high-pressure pipelines offering greater offtake stability and improved gas prices.Still at Cambay, which was voluntarily shut-in during the quarter, Oilex was notified by India's Gujarat Pollution Control Board that its joint venture in the region had contravened water pollution requirements."The company disputes the GPCB notice and in any event, production from the gas facilities was nominal and had voluntarily ceased," said Oilex.Elsewhere, Oilex's Bhandut field was placed under care and maintenance in the quarter, with only ongoing nominal production and exploration potential. Oilex's GSPC joint-venture has commenced a formal process to dispose of its 40% participating interest in Bhandut.In the Timor Sea, the ANPM, the body responsible for managing and regulating petroleum and mining activities in the Timor-Leste area, has kicked off arbitration between Oilex and its JV partners on the project through the International Chamber of Commerce in Singapore, while over in West Kampar, the AIM-listed group remains in dispute with the now bankrupt operating company, PT Sumatera Persada Energi.As of 1010 BST, Oilex shares had tumbled 13.33% to 0.20p.