Oilex Ltd Chairman's Address to Shareholders (7880X)
29 November 2017 - 6:00PM
UK Regulatory
TIDMOEX
RNS Number : 7880X
Oilex Ltd
29 November 2017
ASX Announcement
29 November 2017
ASX: OEX
AIM: OEX
Chairman's Address to Shareholders
Dear Shareholder
The 2017 financial year has delivered a number of important
steps to regain momentum behind the Cambay Project, the Company's
key asset. The Company remains committed to unlocking the multi-TCF
in-place tight gas potential in the tight EP-IV siltstones at the
onshore Cambay Project.
Energy demand in India continues to underpin a strong investment
case for the Joint Venture partners at Cambay. The Indian
government strongly supports the oil and gas sector with new
initiatives to promote exploration and development and particularly
to reduce the reliance on imported energy products. The improved
operating environment in India is further strengthened by the
recent strong rally in Asian LNG prices.
At Cambay, the Company has achieved several key milestones in
recent months:
-- In August, Schlumberger, Baker Hughes GE and ODSI completed a
technical evaluation of the optimal well and stimulation design
required to achieve potential commercial flow rates in the EP-IV
reservoir. Notably the results from their analysis has confirmed
the potential for substantially increased flow rates with the
application of the appropriate stimulation technology suite.
-- In September, a Field Development Plan covering both the high
potential EP-IV reservoir and the modest potential OS-II reservoir
was completed. It was submitted to the government as a requirement
for the application to secure a 10 year extension to the PSC beyond
2019. A decision on the application for the extension is expected
prior to mid-year 2018.
-- In November, the Company released its work programme target
for 2018 comprising up to 9 workovers, and 3 vertical wells with
the possible commencement of a horizontal well. Of this, the EP-IV
program carries up to 2 workovers, 2 vertical wells and the
horizontal well.
-- The 2018 work program provides for a cost effective approach
and is designed to test commercial potential of the EP-IV. Upon
success, it would likely lead into a multi-well horizontal
development program at Cambay.
The Company continues to carefully manage its cash resources.
Our Indian joint venture partner has commenced payment of current
year cash calls and has also paid part of the legacy cash calls.
Resolution of these legacy cash calls will continue to be a
priority in 2018. At the moment, outstanding cash calls total
US$5.6 million.
Strategically, the Company continues to actively review new
opportunities to create value by diversifying the project
portfolio.
On behalf of the Board, I wish to thank our staff, Joint Venture
partners, contractors, local communities, shareholders and
stakeholders for their ongoing support as the Company moves closer
to unlocking substantial unconventional hydrocarbon resources
within the Cambay Project.
Best Regards,
Brad Lingo
Chairman
For further information, please contact:
Investor AIM Broker AIM Nominated Media Enquires Media Enquiries
Enquiries Cornhill Adviser (UK) (Aus)
Oilex Capital Strand Hanson Vigo Communications Citadel-MAGNUS
Ltd Limited Limited Public Relations Michael
Joe Salomon Broker Nominated Patrick Weir
Managing Daniel Gee Adviser d'Ancona/Chris Email:
Director Email: Rory Murphy/Ritchie McMahon mweir@citadelmagnus.c
Email: danielg@cornhillcapital. Balmer Email: om
oilex@oilex.com.au com Email: patrick.dancona@vigo Tel: +618
Tel: +61 oilex@strandhanson.co comms.com 6160 4900
8 9485 Tel: +44 .uk chris.mcmahon@vigoco Australia
3200 20 3700 Tel: +44 mms.com
Australia 2500 20 7409 Tel: +44 20
UK 3494 7830 9700
UK
This information is provided by RNS
The company news service from the London Stock Exchange
END
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