CAMBAY – Gas Sales Agreement Endorsed
Oilex Ltd (ASX: OEX, AIM: OEX) is pleased to announce that it has received endorsement from the relevant Government of India authorities for the sale of gas from Cambay Field, specifically Cambay-73 well.
This is a critical milestone for increasing production from the field and supplying gas to the local market. Returning Cambay-73 to production will also facilitate the collection of key data to further assess the reservoir deliverability of the same reservoir intersected by Cambay-77H.
Managing Director of Oilex, Ron Miller, said;
“We are very pleased to receive the endorsement from the Government of India to sell gas from Cambay-73. As soon as the gas composition from Cambay-77H is confirmed to be similar to Cambay-73, Oilex will be in a strong position to add to our production from Cambay Field. Importantly, Cambay-73 and Cambay-77H will also provide significant deliverability data for the Y zone which can be used in upgrading a portion of the independently certified Contingent Resources into Reserves. The contracted price remains Commercial-in-Confidence and was determined by a competitive bidding process. This reassessment will enable Oilex to consider delivery of pipeline quality gas to the high pressure grid located approximately 7 km from this region the field.”
Source: Oilex Ltd