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LIVE

Saturday, 30 August, 2008, 12:00 GMT | more prices >>

Sticky ending for Ghadaq probe

By Upstream staff

Australian explorer Oilex is to plug and abandon its Ghadaq-1 on Oman’s Block 56 after recovering only heavy oil in two cased hole tests.

Oilex said the tests recovered only traces of oil in the lower Haima formation and about 17 barrels of viscous oil from the Al Khlata sandstone.

The company said the test results would be further analysed for further hints of the commercial potential of the Ghadaq prospect.

The well is the second of three exploration wells to be drilled on the block, Perth-based Oilex said.

The Abraj rig will move to drill the Alyanbou-1 wildcat once abandonment of the Ghadaq-1 well is completed.

Oilex operates the Ghadaq-1 well with a 25% stake on behalf of partners Videocon Industries (25%), Gas Authority of India Limited (Gail)(25%), Hindustan Petroleum (12.5%) and Bharat Petroleum (12.5%).

Oilex also said the Cambay-23Z well on the Cambay Production Sharing Contract in India’s Gujarat state was cutting two cores in targeted sediments below 1975 metres after detecting elevated gas readings.

The company said the gas shows confirmed the results of the Cambay-23 well drilled in the 1960s.

It said the well would be sunk to total depth of 2085 metres before wireline logs and production tests were run.

Oilex operates the Cambay PSC with a total 45% stake held partly through its Indian unit. Gujarat State Petroleum Company holds the remaining 55% stake.