Oilex (ASX:OEX, LON:OEX) confirmed that fracking operations have begun on the 77-H well at the Cambay field, India.
At Cambay, Oilex AIMs to avoid technical problems that hampered a prior well and, following a fracking program, conduct a phase of testing to prove the field’s commerciality.
Now the first of four phases of fracking has kicked off.
"We are pleased that the first stage fracture stimulation is now underway,” said managing director Ron Miller.
“As indicated previously, Oilex has taken a cautious approach during rig up and equipment testing to mitigate risks arising after fracture operations start.
“The immediate pressure increase at surface after the initial perforation is a positive sign.
“The collection of reservoir property data using the micro fracture technique is important for the evaluation of the well's performance during production testing which remains on track to commence in early August 2014, after a flow-back and clean-up period."
Anticipation is growing ahead of the testing phase; indeed on AIM Oilex shares have doubled in valued in the year to date.
At the same time a major shareholder, Magna Energy, is increasing its stake in the company.
Magna has bought 10mln Oilex shares this month, increasing its stake to 19.11% from 17.37%. As a result the shareholder is poised just below the threshold that would trigger a bid for the company.
