Cambay Field - Gas Sales Commence
- Gas sales have commenced from Cambay-73 well which demonstrated deliverability in excess of 95 boepd during start-up operations, significantly above expectation.
- Cambay-73 average daily production is now ~50.5 boepd, including condensate, as production increases.
- Field production will further increase when Cambay-77H starts production and the 5 firm workovers are completed in H2 2015.
- Targeting cash flow positive operations in India by the end of 2015.
Oilex Ltd is pleased to announce the commencement of gas sales from Cambay-73 into the low pressure local market near the Cambay Field. Average daily production from Cambay-73 is ~ 50.5 boepd including condensate. This is the first gas to be sold from the Y zone in the Eocene EP-IV Formation that contains 2P gas Reserves of 206 Bcf and 2P oil Reserves of 8 MMbbls as independently assessed by RISC Operations Pty Ltd. For further information, please refer to Oilex’s announcement dated 16 April 2015 for details of the independently classified Cambay Field Reserves and Contingent Resources.
Demand for gas from local light industrial businesses is ongoing, with expressions of interest to purchase gas continuing to be received by Oilex including from buyers who previously bid for Cambay-73 gas. Later this year, Oilex intends to recommence production from Cambay-77H to increase gas sales to the local market as well as commencing gas sales from Bhandut-3. In addition, the approved firm work programme for 2015/16, which is subject to available funding, includes 5 well workovers and consideration is being given to those which have penetrated the same formation and could be capable of gas production for the local market.
Condensate (API 49º) co-produced with gas is separated at the Cambay Field, combined with other Cambay Field crude oil and transported by truck to be sold to a nearby refinery at import parity price using Bonny Light Crude as a marker reference. Managing Director of Oilex, Ron Miller, said;
“The commencement of gas production from Cambay-73 facilities is a significant milestone for Oilex and marks the first step on the path to achieving positive cash flow from operations in India. Oilex continues to deliver on its plan of production, near-term cash flow and reserves growth to create a sustainable business in the midst of a robust and supportive domestic market for petroleum energy.” Cambay 73 Gas sales commence