LONDON (ShareCast) - (ShareCast News) - Oil and gas explorer Oilex has completed the workover on the Cambay -19z well in India and it expects production to begin shortly.
The London-listed company said the workover was completed on the budget and that the well was pumping out 40 barrels of brine - a fluid that is injected into wells to get oil and gas moving to the surface - per day, indicating that the well is expected to begin producing oil over the next six days.

Oilex, however, said it will tweak the pumping rate once the brine is removed, which means the well's daily rate of production might not amount to 40 barrels once it starts to flow.

"The Cambay workover campaign continues with the successful completion of activities at Cambay-19z," said group managing director Ron Miller.

"The pumping performance to date indicates good well deliverability."

With workover on Cambay-19z completed, late last week the company started a similar procedure on Cambay-20, which is focused on recovering, inspecting, cleaning and replacing the production tubing inside the well.

Upon completion of the workover on Cambat-20, Oilex will begin workover on Cambay-77, saying it has already begun preparations to replace the frac tree - used to prevent equipment failures on high-pressure, high-temperature wells while operations are being carried out - in the well with a production tree.

"We are excited to build up momentum through the workover campaign and capture the commercial benefit of lower contractor service prices currently prevalent in the market," added Miller.

Oilex shares were up 3.56% to 1.42p at 1007 GMT on Tuesday.

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