Cambay-77H – Intervention Complete

  • Significant improvement in flowback rates for gas, oil and water
  • Approximately 75% of the original frac water recovered
  • No formation water recovered to date
  • Changing frac tree to production tree to reduce daily operating costs
  • Preliminary gas composition laboratory analysis is comparable to Cambay-73

C77H FlareOilex Ltd (ASX: OEX, AIM: OEX) is pleased to announce the successful completion of the chemical intervention work with a significant increase in flowback rates.  As announced on 21 August 2014, the work was completed in accordance with the plan developed by Oilex on behalf of the Joint Venture.  Cambay-77H continues to return frac water and additional treated water from coiled tubing (CT) operations along with producing gas and light oil.  Water as a proportion of the production flow must be ~10% or less before testing can commence and it currently varies between 60%-90%.  In order to improve water recovery efficiency, nitrogen gas lifting has also been implemented while the CT unit is at site.

Oilex is also taking additional steps to reduce the operating cost structure during the flowback and clean-up of Cambay-77H including:
  • Removing the frac tree and replacing it with a standard production tree in anticipation of moving towards a formal production test
  • Demobilising various equipment and associated personnel given the current understanding of the well’s performance
The initial compositional analysis of the separator gas from Cambay-77H has been received and concludes that Cambay-77H and Cambay-73 gas have very comparable compositions.  As such Oilex will seek Joint Venture and Government of India endorsement to sell separator gas into the local “off-spec” gas market.  Incremental operations to support “off-spec” sales should be minimal as significant equipment and personnel are already available at Cambay-77H site as part of the flowback and clean-up operations.

Managing Director of Oilex, Ron Miller, said;

“We remain very positive about Cambay-77H and look forward to getting through the water recovery and into the production testing phase of our proof of concept well.  Having similar gas composition as Cambay-73 provides a great opportunity to increase near term production into a market where gas is in very short supply. Selling gas during clean-up and testing will be a welcome revenue stream in addition to the sale of crude oil produced from Cambay-77H.”