Quarterly Quarterly Report June 2016

HIGHLIGHTS

CAMBAY FIELD, ONSHORE GUJARAT, INDIA
  • Oilex reaffirms its commitment to unlocking the multi TCF in-place tight gas potential in its onshore Cambay Block.
  • Planning underway to complete a vertical well with the dual objective of developing un-depleted OS-II sand and to obtain core samples from the EP-IV Zone reservoir for drilling and stimulation studies.
  • Gas sales from Cambay-77H continue with an average gas production rate for the quarter of 152,000 scfd, or 26 boepd (Oilex net 68,000 scfd, or 12 boepd) and with an average associated condensate & oil rate of 6 bpd (Oilex net 3 bpd). 
  • Reserve volumes have been re-classified to Contingent Resources, reflecting deferral of the development timetable and prevailing oil and gas prices.
  • Negotiations continue with our Joint Venture partner to address payment of outstanding cash calls, contributions to programmed activities and approval of the annual budget resulting in delays to planned activities.
  • During the quarter, the Joint Venture partner released US$575,000 towards part payment of outstanding cash calls.
  • Application seeking permission for Extending Well Testing of Cambay-73 and Cambay-77H for another six months for each well and sale of test gas submitted for regulatory approval. 
BHANDUT FIELD, ONSHORE GUJARAT, INDIA
  • Production from the Bhandut facility commenced in April.
  • Test Gas Production at Bhandut-3 well averaged 503,000 scfd, or 87 boepd (Oilex net 201,400 scfd, or 35 boepd) and with an average associated condensate rate of 18 bpd (Oilex net 7 bpd).  
  • The Joint Venture and the Government of India approved the Work Programme & Budget for Bhandut Field for the Indian financial year starting 1 April 2016.
  • During the quarter, the Joint Venture partner released US$302,000 towards payment of outstanding cash calls for the Indian FY 2015-16.
  • Application for three-year extension of Petroleum Mining Lease under active consideration of the government.
  • Field Development Plan under preparation for commercial gas production from Bhandut-3.
CORPORATE
  • During the quarter Oilex reached a settlement with Zeta Resources Limited that ends the legal proceedings between the parties.
  • Mark Bolton was appointed Chief Financial Officer and Company Secretary.
  • Cash balance at 30 June 2016 was $5.2 million.
Quarterly Report June 2016