29 Jun 2011 07:00
29th June 2011
Cambay-76H "Tight" Reservoir Well Report No 4
Oilex Ltd advises that at 28th June 2011 theCambay-76H horizontal well was directionally drilled as planned to a depth of2,596 metres.Report date 28th June 2011 Status Drilling 8 ½" hole at 2,596 metres Past Week's Operations * Drilled 8 ½" hole from 1,595 to 2,596 metres including * Horizontal section from 2,106 to 2,596 metres Objective Cambay Eocene "tight" reservoir Y Zone Kick off point for 1,167 metres deviation Planned Total Depth (TD) Approximately 2,885 metres Well duration Approximately 35 days on a trouble free basis
All depths refer to measured depth below rig rotary table ("MD")
After kicking off from the vertical hole at 1,167 metres, the well was drilled to the horizontal landing point at 2,106 meters and the horizontal section drilled to 2,596 metres.
The Y Zone reservoir was intersected on prognosis. As anticipated, the horizontal section drilled to date in the Y Zone is characterised by log-indicated porous hydrocarbon-bearing intervals with highly elevated gas readings.
Cambay Eocene Tight Reservoirs The Company is making progress in unlocking the potential of the Cambay "tight" Eocene reservoirs that extend across the 161 km2 Cambay Production Sharing Contract ("PSC") area in onshore Gujarat, India. The Company intends to evaluate and exploit these reservoirs using horizontal drilling and fracture stimulation technology that has been developed and proven in North America.
The Cambay-76H "proof of concept" horizontal well will evaluate the production potential of the Y Zone interval of these "tight" reservoirs. An 8 stage fracture stimulation program will be conducted and after well clean-up, it is anticipated that a long term production test will be performed to determine flow rates, quality of hydrocarbons and commercial viability.
The participating interests in the Cambay PSC are:
Joint Venture Party Participating Interest Oilex Ltd (Operator) 30% Oilex NL Holdings (India) Limited 15% Gujarat State Petroleum Corporation Ltd 55% For further information, please contact:Oilex Ltd +61 (0)8 9485 3200 (Western Australia) Bruce McCarthy Managing Director
oilex@oilex.com.au Ben Clube Finance Director oilex@oilex.com.au Ambrian Partners Limited (Nominated Adviser and AIM Broker) Matthew Einhorn +44 (0) 20 7634 4860 (UK) matt.einhorn@ambrian.com Read Corporate Nicholas Read +61 (0)8 9388 1474 (Western Australia) nicholas@readcorporate.com.au Tavistock Communications +44 (0)207 920 3150 (UK) Paul Youens +44 (0)7843 260 623 (UK) pyouens@tavistock.co.uk Ed Portman +44 (0)7791 892 509 (UK) eportman@tavistock.co.uk
This document may include forward-looking statements. Forward-looking statements include, but are not necessarily limited to, statements concerning Oilex Ltd's planned exploration program and other statements that are not historic facts. When used in this document, the words such as "could", "plan", "estimate" "expect", "intend", "may", "potential", "should" and similar expressions are forward-looking statements. Although Oilex Ltd believes that its expectations reflected in these are reasonable, such statements involve risks and uncertainties, and no assurance can be given that actual results will be consistent with these forward-looking statements."
XLON