cambay press report

News from today's http://www.indianpetro.com reports

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June 25: Oilex Australia has resumed work on the 19Z well after mobilizing all its resources to locate a logging tool in the Cambay block, in Gujarat. Speaking exclusively to Indian Petro News, Oilex sources, privy to the project details, told Indian Petro News on Wednesday (June 25, 2008) that the 7-inch production liner has been set-in -- at 2,101 metres -- in the block. Cambay-19Z is now drilling at 2,219 meters in the uppermost Deccan interval, sources added. The company had to halt its testing programme in the well after it lost the logging tool downhole last week. Oilex recently intersected approximately 9 meters of gas-bearing pay -- of good reservoir quality -- in Cambay-19Z at 1,505 meters and 1,545 meters respectively.

The Cambay 19Z well is being cased and deepened to explore the overlying potential reservoir horizons. The Dewanchand Ramsaran-owned rig was mobilized to the present location during May 2008. The new generation drilling rig has significant capacity to drill high-angle deviated wells to deeper zones.

The Cambay consortium recently tested another appraisal well in the discovered block. A specialist wireline logging programme and liner was run and cemented -- from a depth of 2,080 metres -- in the Cambay-23Z. No significant flow has yet been established. The operator however has plans to carry out a fracture stimulation with the objective of increasing the gas flow potential and well productivity. Specially engineered fluids under high pressure would be injected into the channels of the low permeability reservoir to crack the reservoir and improve the flow of oil.

Cambay-23Z and Cambay-19Z are the first and second -- of a six-well drilling programme -- scheduled in the Cambay acreage. Oilex, which has a 45% participatory stake in the prospective Cambay field, is contemplating additional wells in the acreage, depending on the success ratio of the current drilling venture