and the rest which may paint the piture why there was a bit of a...

and the rest which may paint the piture why there was a bit of a sell down last week (if news leaked)


Oilex Ltd (ASX: OEX, AIM: OEX) is pleased to announce that Stage 1 fracture stimulation (frac) has been successfully completed. Subsequently, Cambay-77H started unaided flowback with indications of gas at surface within 24 hours while other operations were ongoing.
Since the previous announcement on 24 June 2014:


Stage 1 Micro frac and Data frac were completed


Stage 1 was treated with a total of ~6,000 bbls of frac fluid and ~136 tonnes of sand


Elevated bottom hole pressure of 5,000 psi was measured


The well started to flowback unaided and gas was detected at surface shortly after Stage 1 frac


2 isolation plugs were set between Stage 1 and 2 because the first failed to seal


Stage 2 perforations were successful completed
Subsequent to Stage 1 activities, gas was detected at surface and elevated overpressure of ~5,000psi was measured indicating a pressure increase of 670psi. The original reservoir pressure of ~4,330psi was interpreted from the micro frac programme. This is consistent with Cambay-76H as highlighted in the Quarterly Report to Shareholders 30 September 2012.
During the system wide pressure test to 9,300psi prior to the Stage 2 frac, a leak developed in the "frac tree". The decision was taken to replace the faulty component(s) with spare components pre-positioned at the well site, before proceeding further with fracture stimulations. Whilst these operations are complex and are currently in progress, they are essential to maintaining the philosophy of risk minimisation.