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21 Jul 2015 07:00
Announcement
21 July 2015
ASX: OEX
AIM: OEX
Cambay Field: Production Update
· Cumulative gas sales of 5.12 MMscf from Cambay-73 for 22 days to 17 July 2015
· Cambay-73 operating at 100% availability
· Average daily gas demand in low pressure network has increased from ~250Mscfd to ~320Mscfd
· Cumulative total oil/condensate production of 336 bbls during same period
Oilex Ltd is pleased to provide an update from the Cambay Field subsequent to the commencement of gas sales from Cambay-73 into the low pressure network. Cambay-73 averaged ~ 54boepd during 22 days from 26 June 2015. Cambay-73 has achieved 100% operational availability during this period. Its condensate to gas ratio (CGR) is calculated to be 58bbls per MMscf, which is 26% higher than the CGR used in the Independent Reserves Report from RISC Operations Pty Ltd. If sustained over time and in other wells, this may have a positive impact on the condensate/light oil included in the Reserves. Please refer to the Oilex Announcement of 16 April 2015 for details of Oilex's independently classified Reserves and Resource base which includes 2P gas Reserves of 206 Bcf and 2P oil Reserves of 8 MMbbls.
Since the introduction of gas from the Cambay Field into the local low pressure network, the average daily demand has increased by 28% to approximately 320Mscfd. In light of the increasing local gas demand, the Joint Venture is considering some operational efficiencies to better service the market and encourage further demand growth.
Managing Director of Oilex, Ron Miller, said;
"Ongoing gas production from Cambay-73 and increasing demand for domestically produced and competitively priced gas continues to support Oilex's objective of achieving positive cash flow from operations in India during 2015. The availability performance of the Cambay-73 facilities to meet daily demand is particularly pleasing. Oilex remains focused and today's news demonstrates that it continues to deliver on its plan of production, near-term cash flow and reserves growth to create a sustainable business in the midst of a robust and supportive domestic market."
Shareholder and Investor Conference Call
To discuss the recently announced Capital Raise transaction and Oilex's exciting upcoming work programme, the Company is pleased to invite investors to a conference call with the Managing Director and Chief Financial Officer at 4pm (WST) / 9am (BST) on 23 July 2015. Details can be obtained from
· Maura Hinds at oilex@oilex.com.au / +61 8 9485 3200 in Australia or
· Alex Aleksandrov at alex.aleksandrov@vigocomms.com / +44 207 016 9598 in the UK.
For and on behalf of Oilex Ltd
Ron Miller
Managing Director
For further information, please contact the company or its advisors listed below:
PAC Partners Pty Ltd Australian Broker Andrew Shearer Email: ashearer@pacpartners.com.au Tel: +61 3 8633 9862 Australia | Westhouse Securities Limited AIM Broker Robert Finlay / Alastair Stratton Email: alastair.stratton@westhousesecurities.com Tel: +44 20 7601 6100 UK
| Strand Hanson Limited Nominated Adviser Rory Murphy /Ritchie Balmer Email: oilex@strandhanson.co.uk Tel: +44 20 7409 3494 UK
| Vigo Communications Public Relations UK Patrick d'Ancona / Chris McMahon Email:patrick.dancona@vigocomms.com chris.mcmahon@vigocomms.com Tel: +44 20 7016 9570 UK |
Cambay-73 production facilities
http://www.rns-pdf.londonstockexchange.com/rns/5799T_-2015-7-21.pdf
Qualified Petroleum Reserves and Resources Evaluator statement
Pursuant to the requirements of Chapter 5 of the ASX Listing Rules, the information in this report relating to petroleum reserves and resources is based on and fairly represents information and supporting documentation prepared by or under the supervision of Mr. Peter Bekkers, Chief Geoscientist employed by Oilex Ltd. Mr. Bekkers has over 19 years experience in petroleum geology and is a member of the Society of Petroleum Engineers and AAPG. Mr. Bekkers meets the requirements of a qualified petroleum reserve and resource evaluator under Chapter 5 of the ASX Listing Rules and consents to the inclusion of this information in this report in the form and context in which it appears. Mr. Bekkers also meets the requirements of a qualified person under the AIM Note for Mining, Oil and Gas Companies and consents to the inclusion of this information in this report in the form and context in which it appears.
LIST OF DEFINITIONS
API | A unit of measurement established by the American Petroleum Institute (API) that indicates the density of a liquid. Fresh water has an API density of 10. |
bbls | Barrels of oil or condensate. |
Bcf | Billion Cubic Feet of gas at standard temperature and pressure conditions. |
Boe | Barrels of Oil Equivalent. Converting gas volumes to the oil equivalent is customarily done on the basis of the nominal heating content or calorific value of the fuel. Common industry gas conversion factors usually range between 1 barrel of oil equivalent (BOE) = 5,600 standard cubic feet (scf) of gas to 1 BOE = 6,000 scf. |
Boepd | Barrels of oil equivalent per day. |
Mscfd | Thousand standard cubic feet of gas per day. |
MMscfd | Million standard cubic feet of gas per day. |
MMbbls | Million barrels of oil or condensate. |
MMscfe/d | Million standard cubic feet equivalent of gas a day. |
MMscfe | Million standard cubic feet equivalent of gas. |
PSC | Production Sharing Contract. |
Reserves | Reserves are those quantities of petroleum anticipated to be commercially recoverable by application of development projects to known accumulations from a given date forward under defined conditions. Proved Reserves are those quantities of petroleum, which by analysis of geoscience and engineering data, can be estimated with reasonable certainty to be commercially recoverable, from a given date forward, from known reservoirs and under defined economic conditions, operating methods and government regulations. Probable Reserves are those additional Reserves which analysis of geoscience and engineering data indicate are less likely to be recovered than Proved Reserves but more certain to be recovered than Possible Reserves. Possible Reserves are those additional reserves which analysis of geoscience and engineering data indicate are less likely to be recoverable than Probable Reserves. Reserves are designated as 1P (Proved), 2P (Proved plus Probable) and 3P (Proved plus Probable plus Possible). Probabilistic methods P90 refers to the quantity for which it is estimated there is at least a 90% probability the actual quantity recovered will equal or exceed. P50 refers to the quantity for which it is estimated there is at least a 50% probability the actual quantity recovered will equal or exceed. P10 refers to the quantity for which it is estimated there is at least a 10% probability the actual quantity recovered will equal or exceed. |
Tight Gas Reservoir | The reservoir cannot be produced at economic flow rates or recover economic volumes of natural gas unless the well is stimulated by hydraulic fracture treatment, a horizontal wellbore, or by using multilateral wellbores. |
Condensate(C5+) | A natural gas liquid with a low vapor pressure compared with natural gasoline and liquefied petroleum gas. Condensate is mainly composed of propane, butane, pentane and heavier hydrocarbon fractions. The condensate is not only generated into the reservoir, it is also formed when liquid drops out, or condenses, from a gas stream in pipelines or surface facilities. |
mD | (Millidarcy) A darcy (or darcy unit) and millidarcy (md or mD) are units of permeability, named after Henry Darcy. They are not SI units, but they are widely used in petroleum engineering and geology. Like other measures of permeability, a darcy has dimensional units in length. |
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