Oilex advises that the Cambay-23Z well has been completed as a potential gas production well. The drilling rig was released on 26 April and commenced the move to the next location, Cambay-19Z. Testing operations on Cambay-23Z will be conducted by a specialist wireline and testing unit as soon as the drilling rig is off the location.

During the past week, the rig completed the wireline logging program and velocity survey and 7' liner was run and cemented from a depth of 2,080 metres. Production tubing was run and a 12 metre interval, part of the possible gas-bearing zone of interest in the upper and middle part of the EP IV, was perforated. No flow has yet been established from the EP IV and once initial testing has been concluded, a fracture stimulation is planned with the objective to increase the gas flow potential and well productivity.

For each of the 6 wells in the Cambay program, the general plan is to demobilise the rig from each location as soon as drilling and logging operations are completed. Further tests on each well will be conducted with a wireline unit that has the capability to undertake the full range of activities that may be required to test the wells conclusively at a much lesser day rate. The other advantage in mobilising the rig to the next location in the sequence at the earliest time is to minimise the risk of the rig and equipment being stranded by adverse effects of the pending monsoon.

Participants in the Cambay Production Sharing Contract are Oilex Ltd (30%), Oilex NL Holdings (India) Limited (15%) and Gujarat State Petroleum Corporation (55%).

OMAN

Alyanbou-1, the third and final well of the first phase 3 well exploration program in Block 56, Oman, spudded on 27 April and is expected to reach total depth of about 1,630 m in late May. In contrast to the Sarha and Ghadaq oil discoveries which were drilled on structures similar to those of the main South Oman Salt Basin, Alyanbou-1 is a wildcat exploration well testing a simple structural play with an estimated unrisked resource potential of 10-375 mmstboip (135 mmstboip mean) in the northeastern part of the block.

Within Block 56 no wells have been drilled this far east of the main salt basin or in the Tertiary Basin. Alyanbou-1 is located to test a large inversion feature located on the western margin of the large Tertiary basin which is separated from the older Paleozoic basin to the west by the interpreted salt wall lineament.

Participants in the Block 56 Exploration & Production Sharing Agreement are Oilex Oman Limited (Operator, 25%), Videocon Industries Limited (25%), GAIL (India) Limited (25%), Hindustan Petroleum Corporation Limited (12.5%) and Bharat Petroleum Corporation Limited (12.5%).

Tags: Oilex