Good God, I nearly fell off my seat with that Ann!!! After 3...

Good God, I nearly fell off my seat with that Ann!!! After 3 long years, what an ann!!!

CAMBAY-77H - Flaring Gas and Light Oil Recovered in Clean-up


· Strong clean-up hydrocarbon flow encountered following mill-out operations
· Gas flaring operations have commenced to ensure well-site safety
· Light oil/condensate flows to surface during flow-back and recovered for sale
· Higher than expected light oil/condensate flows particularly encouraging
· ~40% of the frac water has been recovered

Oilex Ltd (ASX: OEX, AIM: OEX) is pleased to announce that following successful mill-out operations the Cambay-77H well has commenced controlled flow-back of frac fluids with light oil/condensate being recovered to surface and separated for sale along with associated reservoir gas. Gas associated with the well flow-back is currently being flared to ensure safety of all well-site personnel.

After carefully monitoring well flow-back operations under controlled conditions Cambay-77H continues to exhibit characteristics of a high performance multistage frac'd horizontal well.
The well is currently cleaning up and Oilex will advise the market of a stabilized flow rate via a production test once frac fluid return and clean-up operations have been completed. The recovery of ~API 50 light crude during flow-back operations has been particularly encouraging indicating higher than expected liquid hydrocarbon production. Measuring these liquids will provide valuable information regarding the quality of the 8 fracture stimulations and the deliverability of the reservoir.
Managing Director of Oilex, Ron Miller, said;
"We are very pleased that Cambay-77H is exhibiting all of the signs of a high performance well for Oilex. Flowback started very strongly and remains on track to take 2 to 3 weeks. The recovery of light oil/condensate with the gas under clean-up flow this early in the flow-back phase is considered positive and the hydrocarbon liquid volume exceeded our expectations. Oilex looks forward to commencing the production testing after sufficient frac fluids have been recovered from the well and the flow has stabilised."
For and on behalf of Oilex Ltd
Ron Miller
Managing Director

In particular is the recovery of condensate exceeding expectations. AND in particular is the LIGHT oil.

"Crude oil quality is measured in terms of density (light to heavy) and sulfur content (sweet to sour).
Density is classified by the American Petroleum Institute (‘API’). API gravity is defined based on density at a temperature of 15.6 ºC. The higher the API gravity, the lighter the crude. Light crude generally has an API gravity of 38 degrees or more, and heavy crude an API gravity of 22 degrees or less. Crude with an API gravity between 22 and 38 degrees is generally referred as medium crude"

We got an API of 50!!!

I cannot believe it, FINALLY looks the goods. Well done to all holders who managed to stay in there over a grueling journey.

And how fortuitous now that we managed to keep 45% of the project, rather than sell down to 30% and give Magna a cheap ride.

Gotta sign off now, still shaking.