Cambay Field : Production Update

• Cumulative gas sales of 5.12 MMscf from Cambay-73 for 22 days to 17 July 2015 
• Cambay-73 operating at 100% availability
• Average daily gas demand in low pressure network has increased from ~250Mscfd to ~320Mscfd
• Cumulative total oil/condensate production of 336 bbls during same period

Oilex Ltd is pleased to provide an update from the Cambay Field subsequent to the commencement of gas sales from Cambay-73 into the low pressure network. Cambay-73 averaged ~ 54boepd during 22 days from 26 June 2015.  Cambay-73 has achieved 100% operational availability during this period.  Its condensate to gas ratio (CGR) is calculated to be 58bbls per MMscf, which is 26% higher than the CGR used in the Independent Reserves Report from RISC Operations Pty Ltd. If sustained over time and in other wells, this may have a positive impact on the condensate/light oil included in the Reserves. Please refer to the Oilex Announcement of 16 April 2015 for details of Oilex’s independently classified Reserves and Resource base which includes 2P gas Reserves of 206 Bcf and 2P oil Reserves of 8 MMbbls.

Since the introduction of gas from the Cambay Field into the local low pressure network, the average daily demand has increased by 28% to approximately 320Mscfd. In light of the increasing local gas demand, the Joint Venture is considering some operational efficiencies to better service the market and encourage further demand growth.

Managing Director of Oilex, Ron Miller, said;
“Ongoing gas production from Cambay-73 and increasing demand for domestically produced and competitively priced gas continues to support Oilex’s objective of achieving positive cash flow from operations in India during 2015. The availability performance of the Cambay-73 facilities to meet daily demand is particularly pleasing. Oilex remains focused and today’s news demonstrates that it 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.”

Shareholder and Investor Conference Call
To discuss the recently announced Capital Raise transaction and Oilex’s exciting upcoming work programme, the Company is pleased to invite investors to a conference call with the Managing Director and Chief Financial Officer at 4pm (WST) / 9am (BST) on 23 July 2015.  Details can be obtained from 
• Maura Hinds at [email protected]  / +61 8 9485 3200 in Australia or
• Alex Aleksandrov at [email protected] / +44 207 016 9598 in the UK.

Cambay 73 Production update