Cambay-77H Well - Milling Operations Complete

  • All isolation plugs have been successfully milled
  • Gas detected at surface during plug milling operations
  • Flowback and clean-up has commenced
  • Preparing for production testing after flowback and clean-up

Oilex Ltd (ASX: OEX, AIM: OEX) is pleased to announce that plug milling operations have been completed.  Cambay-77H started unaided controlled flowback with gas observed at surface while successfully milling out 4 isolation plugs, including 1 that failed to seal properly.

Since the previous update on 7 July 2014:

  • The isolation plugs were successfully milled
  • 8 fractures into the reservoir were connected to the well bore
  • The well started to flowback unaided under controlled conditions during milling
  • Gas flowed to surface during milling operations
  • Production testing equipment was positioned and commissioned

During milling operations Cambay-77H exhibited strong flowback and clean-up characteristics that were controlled at surface. Flowback and clean-up will continue under controlled conditions to minimise the risk of damage to the fractures. The coiled tubing unit will remain on location for several days as a precautionary measure during the initial flowback and clean-up.

Hydrocarbons produced with the returning frac fluids will be monitored and all water based frac fluids are being stored in a purpose built pit at site. Monitoring these fluids will provide valuable information regarding the quality of the 8 fracture stimulations. As soon as sufficient well stability is achieved, the production test will start and the deliverability of the reservoir will be quantified.

As previously announced the Cambay-77H logs compare favourably to the Cambay-73 vertical well, which produced from the Y zone at ~1MMscfd (plus condensate) and is located approximately 1 km from Cambay-77H.  Cambay-73 also commenced flowback unaided, strengthening the correlation between the wells for the purposes of an independent reserve assessment.

To view the entire announcement, please click on the link below.

Cambay-77H Milling complete