oilex started selling gas from cambay 73

Sale of test gas from Oilex's Cambay fields: Pricing for Cambay-73 gas done; Gas from 77H well likely to be available later this year

April 25: Oilex has started selling test gas from its Cambay-73 well in the Cambay basin. While the price for the gas coming from the Cambay-73 well has been worked out, the price for the Cambay-77H gas is yet to be calculated as the well is currently under drilling.
8As per the operator's estimates the equivalent price of the gas from the Cambay-73 well works out as under:
--Base price: $5.942 per mmBtu
--Royalty (at 10% of the well-head price): $0.594 per mmBtu
--Total: $6.536 per mmBtu
--Over and above this, Value Added Tax (VAT) at the rate of 12.5% will also be added to the total price.
--Then again, a surcharge of 2.5% will also be added to the final price.
8As per Oilex, the test and the production assessment gas composition may change with time, and as a result, the heating value may vary. This estimated price is currently based upon heating value at 1.136 mmBtu per Mscf. Around 0.25 BCF of gas is likely to be recovered from the well.
8As the Cambay-77H well is currently under drilling, the operator has not worked out the price for the Cambay-77H well. Subsequent to the drilling and fracture stimulation, if the composition of the 77H gas is found to be similar to the Cambay-73 gas, then the pricing on an energy basis is expected to come around to the price of the Cambay-73 gas, assuming that the gas from Cambay-77H well will be available for sale later during 2014. As the Cambay-77H well is currently under drilling, at present, it is difficult to comment on the production volumes from the well.