Oilex starts production test on Cambay -77H well in India

Australian oil and gas exploration firm Oilex has started the production test on the Cambay -77H well, located in Gujarat’s Cambay basin, India.

Instrumentation, which has been deployed down hole, will record pressure data for the duration of the test.

The test is designed to offer performance data that will be essential for assessment of reservoir properties.

The production test represents the final major phase of work for the Cambay 77-H proof of concept well.

Oilex plans to bring Cambay-77H into production as soon as possible upon completion of the testing programme.

Oilex managing director Ron Miller said: "Cambay-77H is the first horizontal well with multi-stage fracture treatments to successfully be production tested in India.

"Cambay-77H has also demonstrated that the Cambay Field is amenable to this technology which has now been successfully implemented in India. The flowback and production test results are critical and Oilex is confident that insights from this well, when incorporated into future designs, will lead to optimised production wells."

Significant outcomes that have already been achieved from Cambay-77H will improve commercialisation of the Cambay Field.

The outcomes from the field include hydrocarbon liquid to gas ratio (LGR) which is expected to be 250% higher than estimated which if sustained, leads to a much higher unit revenue stream in barrels of oil equivalent.

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: The production test on the Cambay -77H well is designed to offer performance data that will be essential for assessment of reservoir properties. Photo: Courtesy of Oilex.