The rejuvenation of Oilex's (ASX:OEX, LON:OEX) Cambay field has taken a further step - with the Cambay-77H well about to go on production test.
A successful completion of this test should enable the Cambay joint venture to move on to putting the well into gas production, the firm said.
Combined production of the Cambay-73 well, once brought back into production, and Cambay-77H, during ongoing water recovery, is estimated to be around 1MMscfd and 40bopd (around 200 boepd gross).
The firm said this would be 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.
Cambay-77H continues to recover water, light oil and gas, Oilex said, and the steady flow has been interpreted to indicate that the well has reached its long term stable production curve.
Managing director Ron Miller told investors: "Achieving all the proof of concept objectives in Cambay-77H is nearly complete with many key insights being identified.
"In particular, possible wider frack spacing implemented in future wells will allow more reservoir energy to be used for producing hydrocarbons and less on recovering operations water during flow-back, while being more cost effective.
"At Cambay-77H, Oilex has successfully drilled, fracture-stimulated, recovered substantial operational water, gas and light oil and is about to commence production testing the first horizontal well with multistage fracture treatments in India.
"This is another step in the rejuvenation of the Cambay Field and creating a sustainable business for Oilex."
Given the strong gas demand in India, the joint venture is currently investigating the opportunity to sell gas at the same time as the ongoing water recovery operations after completing the production test, the firm said.
