(MENAFN- ProactiveInvestors)
(ASX:OEX LON:OEX) expects to begin production from the Cambay-73 well in India in May.
The company told investors that the construction of the production facilities is now about 77% complete.
It expects pre-commissioning activities to begin next week and connection of a gas pipeline system to the plant – which is the responsibility of the gas buyer – is anticipated during April.
Ron Millar managing director highlights that this will be the first gas sold from the Cambay field in over 23 years.
" is very pleased with construction progress at Cambay-73 which should enable the joint venture to commence production during May 2015” Millar said.
“Commercial production from Cambay-73 is a key initial step to achieving the company's objective of becoming cash flow positive from operations in India in H2 2015."
Broker SP Angel said today's update is a timely reminder of how far the company has come and the issues that it has faced getting here.
Cambay-73 will supply gas to a local gas market under low pressure and it is expected to produce at a rate of 50 to 60 barrels oil equivalent per day (including condensate which will be separated and trucked to a nearby refinery).
The company is also working towards production from the recently drilled Cambay-77H well.
Shares in were up 15% halfway through Thursday's trading session priced at 2.7p.
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