RE: End of year1 Sep 2019 18:37
From march quarterly update
CAMBAY FIELD, ONSHORE GUJARAT, INDIA
» The Company's plans for the 2019-20 work programme and budget (WP&B) to drill up to two vertical wells are well advanced. Amongst other conditions, these wells are pending resolution of the dispute with GSPC and necessary funding.
» During the December 2018 quarter, the Company announced that GSPC and the Company had entered into commercial negotiations in order to avoid the matter going to arbitration.
» The discussions between Oilex and GSPC regarding a potential commercial settlement, and to enable a drilling programme to proceed remain ongoing however progress has been recently impacted by the Indian national elections currently underway.
» In view of the significant period since these discussions commenced, the Company continues to follow the arbitration process with SIAC where it seeks to fully enforce its rights under the Joint Operating Agreement.
» In the March 2019 quarter, GSPC made no payments towards outstanding cash calls to Cambay JV.
» During the quarter, gas production from the Cambay Field was voluntarily shut-in. Prior to the shut-in. cumulative gas production from the field was 4.85 MMscf and 207 bbls of condensate.