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Oilex receives Indian government approval to distribute Cambay field gas

15th July 2014

Oilex has received endorsement from the relevant government of India authorities for the sale of gas from Cambay Field, specifically Cambay-73 well

Oilex receives Indian government approval to distribute Cambay field gas
Cambay-73 and Cambay-77H will also provide significant deliverability data for the Y zone which can be used in upgrading a portion of the independently certified contingent resources into reserves

This is a critical milestone for increasing production from the field and supplying gas to the local market.  Returning Cambay-73 to production will also facilitate the collection of key data to further assess the reservoir deliverability of the same reservoir intersected by Cambay-77H.

“We are very pleased to receive the endorsement from the government of India to sell gas from Cambay-73,” said Rex Tiller, Oilex managing director. “As soon as the gas composition from Cambay-77H is confirmed to be similar to Cambay-73, Oilex will be in a strong position to add to our production from Cambay Field. Importantly, Cambay-73 and Cambay-77H will also provide significant deliverability data for the Y zone which can be used in upgrading a portion of the independently certified contingent resources into reserves. The contracted price remains commercial-in-confidence and was determined by a competitive bidding process. This reassessment will enable Oilex to consider delivery of pipeline quality gas to the high pressure grid located approximately 7 km from this region of the field.”

As previously announced, the Cambay-77H logs compare favourably to the Cambay-73 vertical well, which produced from the Y zone at around one million square feet a day (plus condensate) and is located approximately one kilometre from Cambay-77H.  Cambay-73 also commenced flowback unaided, strengthening the correlation between the wells for the purposes of an independent reserve assessment.

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