ASX-RNS Announcement
14 April 2022
ASX: OEX / AIM: OEX
Cambay India C-77H Re-frac Update & Revised Gas Sales Contract
Oilex Limited (Oilex or the Company) is pleased to provide the following update to its operations in India and in particular, with respect to the Cambay field.
Oilex and Schlumberger Asia Services Limited ("Schlumberger") have executed a Letter of Intent for the supply by Schlumberger of hydraulic fracturing services, coiled tubing and nitrogen services and perforation services for the planned re-frac of the Cambay C-77H well in July 2022.
Due to the higher than anticipated C-77H re-frac costs caused by a global shortage of fraccing services and equipment, and the delayed start up of gas production on the Cambay field, Oilex plans to raise additional funds over the next approximate month.
In addition, Oilex have negotiated a revised Gas Sales Agreement with Enertech Fuel Solutions Private Limited for the sale of gas from the Cambay field. The revised agreement is based on the recently announced Government of India Domestic Gas Price of $6.1/mmBTU plus an additional 20% premium. The revised gas price is now $7.32/mmBTU compared to the previous gas price of c. $4.2/mmBTU.
Oilex's Chief Executive Officer, Roland Wessel, said:
"Following a competitive tendering process, the Company has selected Schlumberger to provide the bulk of the services required for the upcoming C-77H re-frac operation. We are pleased to have secured the equipment and services for the important C-77H re-frac operation given the worldwide shortage of fraccing services.
The amended Gas Sales Agreement is consistent with the recent Government of India revised Domestic Gas Price announcement."
For and on behalf of Oilex Ltd
Roland Wessel
Managing Director
For further information, please contact:
| Investor Enquiries Oilex Ltd Roland Wessel Managing Director Email: oilex@oilex.com.au Tel: +61 8 9485 3200 Australia | AIM Broker Novum Securities Broker Colin Rowbury Email: crowbury@novumsecurities.com Tel: +44 20 7399 9427 UK | AIM Nominated Adviser Strand Hanson Limited Nominated Adviser Rory Murphy/Ritchie Balmer Email: oilex@strandhanson.co.uk Tel: +44 20 7409 3494 UK | Media Enquiries (UK) Vigo Communications Public Relations Patrick d'Ancona/Finlay Thomson Email: patrick.dancona@vigocomms.com finlay.thomson@vigocomms.com Tel:+ 44 20 7390 0230 UK |
RNS may use your IP address to confirm compliance with the terms and conditions, to analyse how you engage with the information contained in this communication, and to share such analysis on an anonymised basis with others as part of our commercial services. For further information about how RNS and the London Stock Exchange use the personal data you provide us, please see our Privacy Policy.
