Oilex Ltd announces the preliminary results of the flowback and production testing of Cambay-77H. All proof-of-concept objectives have been achieved and the commercial development of Cambay Field using multi-stage frac technology is feasible.

Summary

• Cambay-77H was designed as a Proof-of-Concept well with a short 350m lateral • Initial production over a 24 hour period of 2.03MMscfe/d, 55% hydrocarbon liquids • An oil to gas ratio ("OGR") of ~100 bbls per MMscf of gas in the Cambay-77H area remains valid - some 250% higher than extrapolated from Cambay-73 • Increased OGR adds ~40% revenue per MMscf of produced gas using price assumptions of US$8.00/Mscf and US$70/bbl for gas and oil respectively • Total production during flowback and testing - 62.3MMscfe • Total operations water recovered - 23,732 bbls (88%) - no formation water has been identified during flowback and testing

Tags: Oilex Ltd