Well...It's Fixed!... and Fracced!

Gee... glad I didn't sell...


04 July 2014


CAMBAY-77H WELL - Fracture Stimulation Operations Restart


· Frac tree repairs have been completed
· Stage 2 has been successfully fracture stimulated
· Additional frac tree mobilising to Cambay-77H well site for contingency

Oilex Ltd (ASX: OEX, AIM: OEX) is pleased to announce that Fracture Stimulation Operations (Frac Ops) have recommenced following repairs to the frac tree. As a precaution, mobilisation of a spare frac tree has commenced and it will standby at Cambay-77H site, as all the spare valves have been used for these repairs.

Stage 2 fracture stimulation (frac) has been successfully completed, including a data frac. The well response to stimulation was similar to the Stage 1 frac. As previously reported, subsequent to Stage 1 activities, gas was detected at surface and elevated overpressure of ~5,000psi was measured indicating a pressure increase of 670psi. The original reservoir pressure of ~4,330psi was interpreted from the micro frac programme. No decrease in the elevated overpressure has been noted subsequent to the recommencing operations.
Another announcement will be made upon completion of frac ops and mill out operations. Announcements related to flow back and clean up as well as production testing will depend upon the well response.
Managing Director of Oilex, Ron Miller, said;

"We are pleased to resume frac operations subsequent to the tree repairs and it is very encouraging to see a similar well response to the Stage 1 frac. Importantly, the elevated over-pressure of ~5,000psi continues to be monitored. This is especially encouraging. Oilex has taken the precaution of mobilising standby frac tree to mitigate against further failures in valves exposed to proppant. Oilex looks forward to completing frac operations followed by the flowback and clean-up, leading to production testing Cambay-77H.
For and on behalf of Oilex Ltd