Perth, July 2, 2008 (ABN Newswire) - Oilex Limited (ASX:OEX)(PINK:OIEXF) advises that preliminary results from the first drillstem test at the level of the basal sand secondary objective in the Cambay-19Z appraisal well are available.
- The well has flowed oil to surface from the interval 1,966 metres - 1,972 metres at an average initial rate over a period of 16.5 hours of approximately 180 barrels per day on 1" choke at a flowing pressure of 30 psi.
- No formation water was produced during the test.
- The qualitative assessment of the oil, pending laboratory analysis is that it is a light, sweet crude of API gravity about 350-400 with a low wax content.
The well has been shut in to record pressure buildup data. The next phase of testing may involve adding up to 12 metres of deeper prospective zones that have a similar log response to the initial 6 metre test interval.
Oilex is very pleased with the initial results of the first oil flow to surface in Cambay-19Z and the first oil flow from this zone in the entire Cambay block. The well has confirmed the prospectivity of the deeper targets over the area of the Western High Block.
The basal sandstone was a secondary objective in this well. It has been drilled in few of the previous Cambay wells and the Joint Venture has considered this to be a promising exploration target in the Western High area of the Cambay block.
Further evaluation of the future production potential of this zone will be carried out in two of the four wells remaining in the current drilling program. In these cases, the wells will be designed to maximise the flow rate potential from the basal sand that will become a primary objective.
On conclusion of the test of the basal sand, the EP III and EP IV primary objectives will be tested over a gross interval of 34 metres between 1,764 metres - 1,798 metres. These zones exhibited good gas shows while drilling.
Participants in the Cambay Production Sharing Contract are:
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Joint Venture Party Participating Interest
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Oilex Ltd (Operator) 30%
Oilex NL Holdings (India) Ltd
(100% owned by Oilex Ltd) 15%
Gujarat State Petroleum
Corporation 55%
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Note:
The information in this report has been compiled by the Managing Director of Oilex Ltd, Bruce McCarthy B.Sc. Hons. PhD (Geology) who has over 29 years experience in petroleum geology and Ray Barnes, B.Sc. Hons. the Technical Director of Oilex Ltd who has over 35 years experience in petroleum geology and is a member of the AAPG & EAGE. Estimates of oil-in-place are reported in accordance with the standard definitions set out by the Society of Petroleum Engineers, further information on which is available at www.spe.org.
RFC Corporate Finance Ltd acts as Oilex's Nominated Adviser - contact Stuart Laing +618 9480 2506.
