Oilex Ltd has reaffirmed its commitment to unlocking the multi TCF in-place tight gas potential in its onshore Cambay Block, Gujarat, India. The company is at an advanced stage in completing a detailed working plan to take the Cambay project forward and the results to date support a vertical well targeting recovery of core from the Eocene siltstone (EP-IV or Y Zone).
A vertical well will seek to obtain core samples from the EP-IV Zone reservoir for drill and fraccing optimisation studies. The well will also have the potential to test the shallower, productive, OS-II conventional reservoir or may be later used to frac and test the EP-IV based on results of the core.
As on May 31, 2016, the company’s cash resources were approximately AUD 6.3 million. The company continues to engage with its joint venture partner Gujarat State Petroleum Corporation (GSPC) to resolve outstanding cash calls and gain approval of the 2016/2017 work programme and budget.
Production from the block for the month of May was approximately 42 boepd (gross) with the bulk of production coming from the Cambay-77H EP-IV reservoir. In April 2015, the Company tabled the reserve and contingent resource volumes associated with the EP-III/IV (X and Y Zones) resulting from the review undertaken by third party certifier, RISC. Since that time, a number of key factors have changed.