Oilex Ltd has recently executed an agreement with its joint venture partner, Gujarat State Petroleum Corporation Limited (GSPC) in the Cambay Field Production Sharing Contract (PSC) on the next planned vertical well in the Cambay Field (Well C-78).
The signing of the agreement is a key milestone towards the proposed drilling of Well C-78, unlocking value and possibly securing an extension to the Cambay Field PSC term.
The well is designed to obtain core samples for the EP-IV zone reservoir which are needed for future drilling, completions and stimulation optimisation. The Company has an independently verified multi-TCF resource in the EP-III/IV reservoirs at Cambay.
Under the agreement, GSPC and Oilex have agreed that Oilex will drill, test, complete, commission and, subject to successful operations, commence commercial production from the proposed Well C-78. GSPC shall be entitled to back in to Well C-78 within 365 days from the commencement of commercial production from Well C-78 by written notice to Oilex.
Commenting on the Agreement, Managing Director Jonathan Salomon said the company was pleased to have to have reached an agreement with its Joint Venture partner to progress the drilling of Well C-78. “This reflects a significant milestone in the ability of Oilex to unlock the Cambay Field potential and assist in potentially securing an extension to the PSC term” he said. “The agreement reinforces our determination to add value for shareholders by progressing the development of this key asset.”