LONDON (Dow Jones)--Oilex said Friday tthat the Al Jumd-1 well in Block 56 Oman has encountered substantial oil zones in two high quality sandstone packages within the Al Khlata Formation. Logging while drilling, drill cuttings and ditch gas readings indicate that two thick oil zones were encountered, with preliminary estimated details for these zones being as follows: * Oil is interpreted over a gross 60 metre interval from 1163 - 1233 metres (measured depth) in sandstones with estimated 20-25% porosities. * Oil shows, resistivity log response and gas compositions recorded over this interval suggest potentially lighter oil than equivalent zones at the recent Sarha discovery. * No oil-water contact was observed at the base of this interval. * A further oil zone was encountered in a deeper Al Khlata sandstone over a gross 48 metre interval from 1280-1328 metres MD with no oil-water contact observed. * This zone also exhibited excellent resistivity and porosity log response. The well was spudded on December 1 and is currently drilling ahead to the planned total depth of 1500 metres to evaluate the basal Haima and Huqf formation objectives. Once total depth has been reached the Joint Venture has determined that the well will be suspended for later production testing by a lower cost rig. Participants in the Oman Block 56 Exploration and Production Sharing Agreement are: Joint Venture Party Participating Interest Oilex Oman Limited (Operator) 25% Videocon Industries Limited 25% GAIL (India) Limited 25% Hindustan Petroleum Corporation Limited 12.5% Bharat PetroResources Limited 12.5%
Order free Annual Report for Oilex Ltd. Visit http://djnweurope.ar.wilink.com/?ticker=AU000000OEX8 or call +44 (0)208 391 6028 (END) Dow Jones Newswires December 12, 2008 05:28 ET (10:28 GMT) Copyright (c) 2008 Dow Jones & Company, Inc.
Friday 12 December 2008 21:28:00.000 AEST
OEX Price at posting:
28.9¢ Sentiment: Buy Disclosure: Held
