Perhaps the Gujarat government agreement to the extension is what OEX has been waiting for before announcing prelim flow rates. Maybe announcing results before obtaining agreement would have been premature and give the game away before everything was in place.
I assume agreement by DGH (Department of ....... ) is what they mean by "extended by the Gujarat government".
Otherwise, if 77H was uncommercial they could have let the Cambay lease lapse.
Geez, they were cutting it fine though. The current lease ended 22 September 2014!!
If they didn't have a good idea of commerciality before then they would probably have had to renew the lease with possible financial obligations on OEX to undertake further drilling.
So, this might well be the missing last piece of the jigsaw, before announcement of flow rates and detailed plans for roll-out of the next for wells!!
August 13 News Briefs August 13: 8DGH okays PML extension of Cambay PSC by five years: The DGH has okayed the extension of the Petroleum Mining Lease (PML) of the Cambay PSC by five years, upto September 22, 2019.
--The PML will finally have to be extended by the Gujarat government.
--The present PSC is valid upto September 22, 2014.
--The operator of the Cambay field, Oilex, has submitted a production profile of five years from FY 2014-15 to 2019-20 which has been examined and agreed by the DGH.
OEX Price at posting:
18.5¢ Sentiment: Buy Disclosure: Held
