Oilex Ltd (Oilex or the Company) is pleased to announce that GSPC has provided notification that it has approved the sale of its 55% participating interest (PI) in the Cambay PSC to Oilex for the purchase price of US$2.2 million (‘Purchase Price’) (the ‘Transaction’).

The Transaction has also received the approval of the state government of Gujarat. Following completion of the Transaction, Oilex will hold a 100% participating interest in the Cambay PSC. This will provide Oilex with the ability, subject to sourcing the necessary funding, to restart fieldwork including a work program consisting of the drilling of two vertical wells to appraise the Eocene gas accumulation which is confirmed by historical flow tests and up until recently, low-rate cyclic production from two wells from the same reservoir section.

The Company’s drilling plans in relation to the pilot program are well advanced and are aimed at establishing flow rates after hydraulic stimulation of the Eocene siltstone reservoir. The pilot program will implement the recommendations from a 2017/18 Baker Hughes-GE study focussed on drilling and stimulation best practice. Any hydrocarbon production from these wells will utilise the existing Cambay processing and storage facilities and the connection to a local low-pressure gas pipeline. 

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