Oilex Plans to Drill Four New Wells in India's Cambay Field

Oilex plans to drill up to four wells at Cambay field located in the western Indian stated of Gujarat.

“Subsequent to the successful flowback and production testing of the proof of concept well, Cambay-77H, Oilex commenced planning for the 2015/16 work program year. The work program consists of a firm 2 well drilling campaign and 2 contingent wells for which all long lead items will be procured concurrently such that a timely decision can be made to commit to the contingent wells,” Oilex said in a statement Monday.

The work program has been approved by both the joint venture and the Government of India. 

Oilex expects the first well to spud late in the second half of 2015, subject to the finalisation of funding. 

The company said it has commenced work on schedule critical tendering activities and expects to take advantage of the recent decrease in global oil & gas activity to achieve a reduction in drilling and other costs.

In December, Oilex said the Cambay field in Gujarat is expected to have robust economics, despite the recent sharp drop in oil prices. “The well economics are underpinned by the significant excess of demand over supply within the Indian domestic economy, which is forecast to grow,” the company said.

In January, the company received approval from the Indian government for the sale of gas from the Cambay field, specifically from the Cambay-77H well. This latest endorsement by the government follows the announcements made by the company in July and December, in which it was reported that Oilex was authorised to sell gas from Cambay-73 and Bhandut-3 wells respectively.