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Australian oil and gas exploration major Oilex Ltd on Wednesday announced that it has started production tests on the Cambay -77H well in Gujarat’s Cambay basin. This is final major field activity before commercial production from the field.
The company has already finished a five-day shut-in period before the test to allow the well to stabilise after approximate 85 days of flowback production.
After the test is concluded all the proof of concept objectives will have been successfully completed. “Oilex will then focus on putting Cambay-77H into production as soon as possible, as well as incorporating the proof of concept outcomes into the planning for the next drilling campaign,” as statement by the company said.
Significant outcomes from Cambay-77H have already been achieved which would enhance commercialisation of the Cambay Field. The outcomes from the field include hydrocarbon liquid to gas ratio (LGR) which is estimated to be 250 per cent higher than expected which if sustained, leads to a much higher unit revenue stream in barrels of oil equivalent (Boe).
“Also, the oil and gas recovery started on the first day of flowback and gas sales during flowback operations in future wells is possible as the gas market is readily available. This leads to early cash flow and faster payback of well costs,” the company stated in a statement on its website.
Commenting on the development managing director of Oilex, Ron Miller, said, “Cambay-77H is the first horizontal well with multi-stage fracture treatments to successfully be production tested in India. Cambay-77H has also demonstrated that the Cambay Field is amenable to this technology which has now been successfully implemented in India.”
“The flowback and production test results are critical and Oilex is confident that insights from this well, when incorporated into future designs, will lead to optimised production wells. The hydrocarbon liquid content is also very welcome given its positive influence on revenue. We look forward to announcing the flowback operations and production test results subsequent to completing analysis of the test data,” Miller added.
Cambay-77H field is a joint venture between state-owned Gujarat State Petroleum Corporation (GSPC) and Australia-based Oilex Ltd, where the former holds 55 per cent stake and the latter 45 per cent.
