Quarterly Report September 2016

CAMBAY FIELD, ONSHORE GUJARAT, INDIA 
  • Oilex continues to focus its resources on unlocking the multi-TCF in-place tight gas potential in its onshore Cambay Block.
  • Planning continues for the drilling of the Cambay-78 vertical well with the dual objectives of developing the un-depleted OS-II sand and to obtain core samples from the EP-IV Zone reservoir for drilling and stimulation studies.
  • Agreement reached with GSPC for Oilex to drill Cambay-78 on a ‘Sole Fund/Sole Reward’ basis.
  • During the quarter, the Joint Venture partner released US$183,800 against outstanding cash calls.
BHANDUT FIELD, ONSHORE GUJARAT, INDIA
  • Production at Bhandut-3 well averaged 232 mscfd, or 40 boepd (Oilex net 93 mscfd, or 16 boepd).
  • Following technical and economic assessment, Bhandut-3 has been shut-in from 6 October 2016 due to increased water production.
  • During the quarter, the Joint Venture partner released equivalent US$100,359 against of outstanding cash calls.
  • Application for three-year extension of Petroleum Mining Lease was approved.
CORPORATE
  • Implementation of additional material cost reduction initiatives undertaken in order to preserve cash resources ahead of the planned Cambay-78 vertical well and ongoing working capital requirements.
  • These additional cost reduction programmes, being undertaken in both Perth and India, will see a 30% reduction in staff and significant reductions to the executive management and director’s remuneration.
  • The Company is proceeding with its insurance claim in respect of potentially recovering part of the costs associated with the Zeta litigation.
  • Cash balance at 30 September 2016 was $3.65 million.
September 2016 Quarterly Report