Oilex Plans to Drill Another Well in India's Cambay Gas Field

Oilex Ltd is in the process of drilling a new vertical well at Cambay gas block in the western Indian state of Gujarat.

On Friday, the company said it is committed to unlocking the multi TCF in-place tight gas potential in the block and is at an advanced stage in completing a detailed working plan to take the Cambay project forward.

The well will target the Eocene siltstone (EP-IV or Y Zone) and is essential prior to drilling a horizontal extension for potential later fracking and exploitation of the Eocene siltstones. The detailed planning for this well is still being finalised and is subject to budget approvals, Oilex said.  “This approach allows the company to take advantage of the lower cost vertical well drilling rates in India at present.”

The company’s cash resources at the end of May were approximately A$6.3 million.

The company said it is discussing with its joint venture partner Gujarat State Petroleum Corporation (GSPC) to resolve outstanding cash calls and gain approval of the 2016-2017 work program and budget.  

“The resolution of these matters is essential for the company to extract maximum value from the Cambay field.  Various approaches to progress work at Cambay are being considered,” Oilex said.