Quarterly Report 30 June 2014
CAMBAY PSC (45% & OPERATOR), ONSHORE GUJARAT, INDIA
- Cambay 77-H 4 ½ inch casing set and cemented, well secure for fracture stimulation
- Stage 1 fracture stimulation successfully completed
- Gas detected at surface shortly after Stage 1 fracture stimulation with overpressure of ~5000 psi measured indicating pressure increase of 670 psi
- Sale and Purchase Agreement unwind process triggered, Oilex retains 45% direct interest in the Cambay PSC with Magna Energy Ltd (“Magna”) becoming cornerstone investor in Oilex. Unwind process was then followed by on-market purchases by Magna, resulting in Magna holding a 19.1% interest.
Post end of quarter:
- Remaining fracture stimulation stages 2-4 successfully completed
- All plugs successfully milled out
- Strong clean-up hydrocarbon flow encountered following mill-out operations
- Light oil/condensate flows to surface during flow-back and recovered for sale
- Higher than expected light/condensate flows particularly encouraging
- Gas Sales Agreement for Cambay-73 endorsed by the relevant Government of India authorities
- The Cambay Joint Venture has made an insurance claim associated with the failure of the frac tree components at Cambay-77H.The order of magnitude estimate is approximately USD 1 million subject to finalising the costs and discussions with underwriters.
To view the entire document, please click on the link below: June 2014 Quarterly Report