Oilex Reaffirms its Commitment to Cambay Gas Project in India

Oilex has reaffirms its commitment to unlocking the multi TCF in-place tight gas potential in its onshore Cambay Block in the Indian state of Gujarat.

The company in its quarterly report said planning is underway to complete a vertical well with the dual objective of developing un-depleted OS-II sand and to obtain core samples from the EP-IV Zone reservoir for drilling and stimulation studies.

Gas sales from Cambay-77H continue with an average gas production rate for the quarter of 152,000 scfd, or 26 boepd (Oilex net 68,000 scfd, or 12 boepd) and with an average associated condensate & oil rate of 6 bpd (Oilex net 3 bpd).

The company continues negotiations with its joint venture partner to address payment of outstanding cash calls, contributions to programmed activities and approval of the annual budget resulting in delays to planned activities. During the quarter, the JV partner released $575,000 towards part payment of outstanding cash calls.

Meanwhile, production from the Bhandut facility commenced in April.

Test gas production at Bhandut-3 well averaged 503,000 scfd, or 87 boepd (Oilex net 201,400 scfd, or 35 boepd) and with an average associated condensate rate of 18 bpd (Oilex net 7 bpd). 

Oliex’s JV partner and the Government of India approved the work programme and budget for Bhandut field for the Indian financial year starting April 1, 2016.

During the quarter, the company received $302,000 from its JV partner towards payment of outstanding cash calls for the fiscal 2015-16.

Field development plan is under preparation for commercial gas production from Bhandut-3.