LONDON (ShareCast) - Hydrocarbons producer Oilex reported that production tests are about to begin on its Cambay-77H well at the namesake field.
The Australian firm said that a successful completion of the test should enable it to make further progress with the Cambay joint-venture and to put the gas well into production.

Oilex said it estimated production of the Cambay-73 well and Cambay-77H, during ongoing water recovery, to be around one milion standard cubic feet per day and 40 barrels of oil per day, which amount to a gross output of about 200 barrel of oil equivalent per day.

"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," said group's managing director Ron Miller.

"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."

Oilex said putting the gas well into production would be an important step towards cash neutral operations. Cambay-77H continues to recover water, light oil and gas, the firm said, adding that the steady flow has been interpreted to indicate that the well has reached its long term stable production curve.

On Monday, Oilex shares closed down 20% to 3.50p.

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