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Oilex shares up as it restarts operations at Cambay-76H well in India


Shares in oil and gas explorer Oilex (LON:OEX, ASX: OEX) were up more than six per cent in early trading after the firm revealed it had restarted operations at the Cambay-76H horizontal well in India.

The firm suspended activity at the onshore well on the Cambay field in Gujarat state at the end of August when milling equipment became stuck.

Now, the firm said it restarted operations on December 6 at 02.30 WST.

As at 9.05 am in London, the firm's shares were trading up 6.78 per cent at 15.75 pence.

Preparations are now in progress for a clean up and flow- testing of the well and a work over rig has been mobilised to the site and has been "rigged up".

"During the past week the well was "killed" for installation of a Blow Out Preventer (BOP). This build-up of pressure in the wellbore and the previously reported initial flowback of hydrocarbons and stimulation fluid in August, are interpreted to be encouraging for clean up and flow testing the well," the firm said today.

The main aim of the well is the acquisition of data from a long term
production test to assess the potential of the Y Zone interval of the Eocene "tight" reservoirs.

In October this year, the firm announced “encouraging” test results from an independent assessment of reservoirs in the Cambay Field production sharing contract (PSC).

The assessment, conducted by Netherland Sewell and Associates (NSAI), was across six potential Eocene reservoirs and showed potential for the recovery of oil and gas.

Discovered gross in-place volumes amounted to more than 1.3 billion cubic feet of gas and 1,633 million barrels of oil. Unrisked, gross recoverable volumes were for 494.7bcf of gas and 83.3 million barrels of oil.

Reports on operations will be made when material events occur, Oilex said in today's statement.

Oilex has a 45-per cent net working interest in the Cambay Field PSC.

Quick facts: Oilex Ltd

Price: 0.003 AUD

Market: ASX
Market Cap: $12.5 m

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