Oilex strikes gas in Gujarat

Australia's Oilex Ltd on Monday said the company has made huge natural gas discovery in Gujarat that may hold over 1.5 trillion cubic feet (tcf) of recoverable reserves. Industry estimates put the total resource base or in-place reserves in the Cambay basin discoveries near Khambat, 160-km south of Ahmedabad, at 20-30 tcf, almost equivalent to the in-place reserves of Reliance Industries Ltd's eastern offshore Krishna Godavari (KG)-D6 fields.

However, KG-D6 fields have a higher recovery factor with almost 12 tcf of gas likely to be produced, while in Oilex's case, only 1.5 tcf can be produced as the reservior is "tight" with low permeability.

Oilex, which has already drilled wells on the Cambay Field, also announced "a significant upgrade to its reserves and contingent resources," based on evaluation by consultants NuTech Energy Alliance and Morning Star LLC.

The Cambay field may hold 853 billion cubic feet (bcf) of reserves justified for development plus another 720 bcf of contingent resources, totalling the recoverable reserves at 1.5 tcf. Oilex holds 45 per cent interest in the field, and Gujarat State Petroleum Corp holds the rest.

courtesy : HT