Oilex Planning New Well at Cambay Block in Gujarat State, India
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Oilex Ltd plans to drill a vertical well at the Cambay Block in Gujarat state in India once it can get the finances.
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. Detailed planning for this well is still being finalised and is subject to JV/Budget approvals.
At end May, Oilex had cash A$6.3mln and was talking with joint venture partner Gujarat State Petroleum Corporation over money it is owed and the budget for the coming year.
The junior is currently bearing all of the ongoing costs of the joint venture, though it recently settled its legal dispute with shareholder Zeta.
Production from Cambay in May was 42 barrels per day and from Bhandut-3 the gas equivalent of 120 barrels per day.
Jonathan Salomon, managing director, said: “Last week’s agreement with Zeta Resources Limited to end legal proceedings between the parties has provided Oilex with a clearer path forward and was a key priority for us.
The revitalized management team can now gather momentum on the path to the potential development of Cambay that reflects what was learned from the previous wells.
“We look forward now to resolving issues with GSPC and progressing work at Cambay”.
Source: (June 27, 2016) Proactive Investors
About Oilex Ltd
Oilex Ltd is an oil and gas exploration and production company focused on onshore unconventional opportunities around the Indian Ocean Rim.
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