Oilex updates volumes and reserves at Cambay

27th May 2022 10:53

(Sharecast News) - Oilex updated the market on the reclassification of Cambay gas and condensate volumes to reserves on Friday, and an increase in resources.

The AIM-traded firm said a review of its net reserve and resource position in the Cambay production-sharing contract (PSC) area by an independent reserves auditor resulted in the return of 206 billion cubic feet of gas and eight million barrels of condensate to the 2P reserves category, from contingent resources.

Its participating interest in the reserves and resources increased to 100% from 45%, meanwhile, following its purchase of GSPC's share of the project.

"The return of the volumes from contingent resource to reserve classification and the increase in overall volumes reflect the very significant and positive advances made by the company over the last 12 months," said chief executive officer Roland Wessel.

"The current efforts to re-frac the C-77H well and increase production levels are on schedule and it is expected that equipment will be mobilised to the Cambay field in June with the re-frac flow back testing scheduled for July."

Wessel said current production at C-77H confirmed the presence of gas and condensate within a "tight formation", adding that specialist advice received on implementing a re-frac stimulation suited to the geology of the formation would provide the best opportunity to realise commercial gas flows.

"A successful outcome will allow further field development to be undertaken to address the large gas and condensate volumes that have been identified."

At 1031 BST, shares in Oilex were down 1% at 0.19p.

Reporting by Josh White at Sharecast.com.