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Oilex finishes plug milling at India hydraulic fracture well Cambay-77H

14th July 2014

Oilex has announced that plug milling operations have been completed at its Cambay-77H hydraulic fracture well

Oilex completes plug milling at India onshore hydraulic fracture well Cambay-77H
Hydrocarbons produced with the returning frac fluids will be monitored and all water based frac fluids are being stored in a purpose built pit at site

Cambay-77H started unaided controlled flowback with gas observed at surface while successfully milling out four isolation plugs, including one that failed to seal properly.

Since the previous update on 7 July 2014, the isolation plugs were successfully milled and eight fractures into the reservoir were connected to the well bore. The well started to flowback unaided under controlled conditions during milling and gas successfully flowed to the surface.

Production testing equipment was positioned and commissioned.

“We are very pleased that the milling operations were successful and all the fractures are now connected to the wellbore,” said Ron Miller, Oilex managing director. “Importantly, the elevated over-pressure of 5,000psi and the strong flow back characteristics are very positive results. Oilex is looking forward to commencing of the production testing after sufficient frac fluids have been recovered from the well. Further analysis of the fracture stimulation programme and production data will be needed to quantify the reservoir deliverability. It has been a long journey back from Cambay-76H and Oilex looks forward to a bright future, focused on value for its shareholders and methodical in its delivery.”

During milling operations Cambay-77H exhibited strong flowback and clean-up characteristics that were controlled at surface. Flowback and clean-up will continue under controlled conditions to minimise the risk of damage to the fractures. The coiled tubing unit will remain on location for several days as a precautionary measure during the initial flowback and clean-up.

Hydrocarbons produced with the returning frac fluids will be monitored and all water based frac fluids are being stored in a purpose built pit at site.

Monitoring these fluids will provide valuable information regarding the quality of the 8 fracture stimulations. As soon as sufficient well stability is achieved, the production test will start and the deliverability of the reservoir will be quantified.

As previously announced, the Cambay-77H logs compare favourably to the Cambay-73 vertical well, which produced from the Y zone at around one million square feet a day (plus condensate) and is located approximately one kilometre from Cambay-77H.  Cambay-73 also commenced flowback unaided, strengthening the correlation between the wells for the purposes of an independent reserve assessment.

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