Quarterly Report 31 March 2016

HIGHLIGHTS

CAMBAY FIELD, ONSHORE GUJARAT, INDIA 
  • Gas sales from Cambay-77H continue with an average gas production rate for the quarter of 248,870 scfd, 43 boepd (Oilex net 111,992 scfd, 19 boepd) and with an average associated condensate rate of 11 bopd (Oilex net 5 bopd). 
  • A cost cutting programme has been undertaken covering field operations and office costs in India in response to continued low oil & gas prices and the reduced activity level.
  • A phased development plan for Cambay-77H and Cambay-73 is being finalised for government approval to allow continued production from Cambay-77H and to bring Cambay-73 back on line. 
  • Technical work is underway investigating alternative low cost drilling and development strategies to access hydrocarbon volumes present in the Eocene formation.
  • Geological review work is underway to identify workover and/or new drilling opportunities in the shallower conventional Oligocene OSII formation with the possibility of combining deeper targets in one well. 
  • Negotiations continue with our joint venture partner to address payment of outstanding cash calls, contributions to programmed activities, and annual budget resulting in delays to planned activities and cashflows.
  • A revised base budget has been submitted to the JV partner for the financial year starting April 2016.   
BHANDUT FIELD, ONSHORE GUJARAT, INDIA
  • Preparation for production start-up continued during the quarter.
  • Gas production commenced in early April flowing at the expected stabilised rate of 700,000 scfd, 120 boepd (Oilex net 280,000 scfd, 48 boepd) through a 8/64” choke.
  • The JV approved the Work Programme & Budget for Bhandut Field for the Indian financial year starting April 2016.
CORPORATE
  • A cost cutting programme has been undertaken covering Perth office in response to continued low oil & gas prices and the reduced activity level.
  • Oilex continues to negotiate with Zeta Resources Limited (Zeta) to resolve the current dispute.  Zeta filed and served its reply and defence to Oilex’s cross claim in the Federal Court.
  • Brad Lingo, who has 30 years of experience in the industry was appointed as an independent non-executive director in February.
  • Jonathan Salomon, was appointed as Managing Director following the resignation of Ron Miller.