Oilex Starts Gas Sales from Cambay-73 in India's Gujarat State

Oilex Ltd. reported Monday it has started gas sales from Cambay-73 well into the low pressure local market near the Cambay field in the Indian state of Gujarat.

Average daily production from Cambay-73 is around 50.5 barrels of oil equivalent per day (boepd) including condensate, the company said in a statement. This is the first gas to be sold from the Y zone in the Eocene EP-IV Formation that contains 2P gas Reserves of 206 billion cubic feet (Bcf) and 2P oil Reserves of 8 million barrels as independently assessed by RISC Operations Pty Ltd.

“Demand for gas from local light industrial businesses is ongoing, with expressions of interest to purchase gas continuing to be received by Oilex including from buyers who previously bid for Cambay-73 gas,” Oilex said.

Later this year, Oilex intends to recommence production from Cambay-77H to increase gas sales to the local market as well as commencing gas sales from Bhandut-3. In addition, the approved firm work program for 2015-16, which is subject to available funding, includes 5 well workovers and consideration is being given to those which have penetrated the same formation and could be capable of gas production for the local market.

Condensate (API 49 degree) co-produced with gas is separated at the Cambay field, combined with other Cambay Field crude oil and transported by truck to be sold to a nearby refinery at import parity price using Bonny Light Crude as a marker reference.