Cambay new wells, page-2

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Hugtorious

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19/11/14

03:29

Post #: 14311867
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Originally posted by Joatmon ↑

The latest Oilex presentation indicates the proposed locations of 6 new wells in Cambay (page 13 of 23). These appear to be 4 horizontal production wells targeting the same reservoir as Cambay-77H, and two vertical exploration wells. One exploration well appears to target the Z zone, and the other the deeper Deccan Traps.
To me this indicates several interesting things:
1. very definitely that the Y zone is commercially productive – this is the formation producing in the Cambay-77H well.
2. 4 new wells in the y formation would almost certainly move Oilex into being a profitable company generating long term ongoing revenues.
3. The Z zone exploration well could unlock similar potential to the Y zone – wait and see for this.
4. The Deccan Traps well is deeper and more expensive and risky so I would expect that to be the last well in the sequence – definitely after the Z zone well. This is a pure exploration well and so the rational would be if it produces it was worth it and if it is a duster or wet – no need to drill deeper than the Z zone in future.

Of course these are my ideas only and Oilex has better information and therefore better plans that I do.

Even excluding any Canning basin developments I see an active future for Oilex for the next few years, and I am sticking with my holding at least until the proposed Cambay drilling program is completed.

My question is why sell ahead of the drilling program in a known hydrocarbon producing field?

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Combay has huge potential .
Sadly it has poor management .

OEX Price at posting: 6.7¢ Sentiment: None Disclosure: Not Held
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0 Great analysis

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Cambay new wells, page-2

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