Oilex (ASX:OEX, LON:OEX) expects to begin production from the Cambay-73 well in India in May.
The company told investors that the construction of the production facilities is now about 77% complete.
It expects pre-commissioning activities to begin next week, and connection of a gas pipeline system to the plant – which is the responsibility of the gas buyer – is anticipated during April.
Ron Millar, Oilex managing director, highlights that this will be the first gas sold from the Cambay field in over 23 years.
"Oilex is very pleased with construction progress at Cambay-73 which should enable the joint venture to commence production during May 2015,” Millar said.
“Commercial production from Cambay-73 is a key initial step to achieving the company's objective of becoming cash flow positive from operations in India in H2 2015."
Broker SP Angel said today's update is a timely reminder of how far the company has come and the issues that it has faced getting here.
Cambay-73 will supply gas to a local gas market, under low pressure, and it is expected to produce at a rate of 50 to 60 barrels oil equivalent per day (including condensate, which will be separated and trucked to a nearby refinery).
The company is also working towards production from the recently drilled Cambay-77H well.
Shares in Oilex were up 15% halfway through Thursday's trading session, priced at 2.7p.
