Oilex completes proof-of-concept objectives for Cambay field in India

Australian oil and gas exploration firm Oilex has completed proof-of-concept objectives for the commercial development of the Cambay field in India.

The company said the key field results from Cambay-77H flowback and production tests were encouraging.

The sustained initial 24 hour rate during flowback was 2.03MMscfe/d, featuring 55% light oil with concurrent operations water production of 1,867bbls/d.

Total hydrocarbon production was 43MMscf of gas and 3,372bbls of light oil/condensate.

The maximum liquid hydrocarbon to gas ratio was 349bbls/MMscf with an average of 77bbls/MMscf.

Oilex managing director Ron Miller said: "With all the proof-of-concept objectives having been achieved, a significant milestone has been reached towards creating a profitable and sustainable business.

"It is also a first step for India, towards improving its domestic petroleum supply by using multiple fracture treatments in horizontal wells that have transformed the energy equation in North America."

In July 2005, Oilex entered into an agreement with the Cambay Field Joint Venture, comprising Gujarat State Petroleum Corporation and Niko Resources to acquire a 30% participating interest in the production sharing contract (PSC) covering the Cambay field.

Oilex acquired a further 15% equity interest from Niko and now holds a 45% participating interest in the Cambay PSC.

Image: Oilex completed proof-of-concept objectives for the commercial development of the Cambay field. Photo: Courtesy of Oilex.