Oilex moving forward, page-13

Chill, it really could only lose pressure in my opinion over the med-long term if water became prevalent
or it is REALLY heavy with oil v condensate & dry gas. There have been no reports of water and I'm
not yet convinced that it is overly heavy with oil v the other 2. So, imo I would expect pressure to be
maintained well after 6 months or so.

Here are a few extracts from a study done on the Eagle Ford Shale {The one Oilex has been only
to happy to compare the Cambay to}. Done in 2013.

The middle geographic segment yields condensate and wet gas, and it is widely believed that the gas content enables the oil molecules to flow through the rock with less resistance, leading to higher reservoir pressure and flow rates.Because the reservoir is shallower and the lower gravity oil molecules are larger, the Oil Window typically exhibits lower reservoir pressure and lower corresponding initial flow rates. The pressure indications generally increase moving south across the Oil Window and into the Condensate Window, where the reservoir is more gas- saturated, generating greater flow of condensate/liquids through the shale.

Reservoir parameters •Eagle Ford Formation: 10,500’ TVD •Initial reservoir pressure: 7,350 Psi •API gravity: 41.5o •Thickness: 290’ •Average porosity: 9%

Now 77H ; TD of 2370m or 7800ft Initial reservoir pressure 5000psi, API gravity 50, thickness I think about
300 feet, Porosity ?

As a spurious suggestion, maybe we are in a " shallower " reservoir {although as Oilex states, there are
no wells to compare with in the Cambay as yet} that is heavy with oil. If it resembled the same characteristics
as the oil window in the EFS then yes pressure would be lower. I tend to discount this for 3 reasons.

1. No water formation and not likely to be
2. Well flowed back 40% frac water & 790 boo in first 7 days so pressure was v good prior to work-overs.
3. 2370m is hardly what I would consider shallow.

Other interesting points ;

Optimal Drilling and Completion Evolving: As the play has matured, drilling continues to become more efficient, as operators have markedly improved their drilling days with some wells now being drilled in 15 days or less. The optimal completion design has also evolved, with laterals currently ~5,000’ and frac intervals ranging from 250’ to 350’ apart.

Well spacing has consistently become tighter as operators have gained further understanding of the play. The horizontal wells being drilled are estimated to be draining 80-85 acres, and we think this will eventually become the norm for spacing, though some operators may begin testing further downspacing. Pad drilling and multi-laterals are likely to evolve as best practices for drilling, allowing operators to save money on site infrastructure, mobilization times and day rates from service companies.

Little bit of a kick-along on the AIM {Up 8% so far} after a respectable finish on the ASX.

GLTAH