Oilex (LON:OEX) shares were up by nearly 41% in late trading after it announced that following successful mill-out operations the Cambay-77H well has begun 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.
It says 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 eight fracture stimulations and the deliverability of the reservoir.
Ron Miller, managing director of Oilex, 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 two to three 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."
