OEX 20.0% 0.6¢ oilex ltd

Albright Adam says hi, his thoughts

  1. 122 Posts.
    Adam posted this a few mins ago on LSE (I can't post there today as I am banned for 24hrs lol)

    21st august
    It is a nice sweetener to continue production of crude oil which sells for an attractive price during flow-back and clean-up as some North American wells only flow water during early clean-up. To date, the data collected continues to support Cambay-77H as capable of being a high performance well compared to previous well designs consisting of vertical or deviated wells with single fracs in the Cambay Basin. As the first well of this type in the Cambay Basin to "flow-back and clean-up", it is not unexpected for some remedial work as part of those operations."

    17th september
    We remain very positive about Cambay-77H and look forward to getting through the water recovery and into the production testing phase of our proof of concept well. Having similar gas composition as Cambay-73 provides a great opportunity to increase near term production into a market where gas is in very short supply. Selling gas during clean-up and testing will be a welcome revenue stream in addition to the sale of crude oil produced from Cambay-77H."

    8th october
    Average liquid (oil and water) recovery rate - 229 barrels per day
    · Average gas rate - 0.41 MMscfd, (excluding nitrogen)
    · Estimated 76% of the frac water recovered
    · Choke size varied between 20 - 22 (64ths inch)
    ·"Oil and gas continue to be produced along with recovery of frac water. Oil is sold to a local refinery and the application process to sell Cambay-77H gas has commenced. Setting aside the operational delays to recover the RBP and clean the well bore, Oilex is pleased with the well's performance at a relatively small choke. Flowback is all about removing the water put into the reservoir during frac and coil tubing operations, as this impairs the hydrocarbon production rates. We look forward to the improved water recovery leading to better oil and gas production."
    27th october
    Successful completion of the test should enable the Cambay JV to progress putting the well into gas production. The test will also assist in identifying if any ongoing impairment of the well bore connection to the reservoir. The combined production of Cambay-73, once brought back into production, and Cambay-77H, during ongoing water recovery, is estimated to be circa 1MMscfd and 40bopd (~200 boepd gross). This is a significant step towards cash neutral operations, which should be attainable with the start-up of Bhandut-3 gas sales and ongoing Cambay oil production from legacy wells.
    NOTE. 40 bopd is from 73 so I assume (~ 200 boed gross) is from 77. or am I barking up a gum tree. But I cant see anything to be dissappointed in here, even though that seems to be the effect
 
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