(MENAFN- ProactiveInvestors)
(ASX:OEX LON:OEX) is set to put three historical wells in two separate fields into production in 2015 it told investors in a quarterly update.
Cambay-73 production is due to begin in May this year; Bhandut-3 production to commence in July and Cambay-77 production to kick off in August it said.
It is the first time gas has been produced from Cambay since the early 1990's the group said.
"Production from these wells will be a substantial step towards cash positive operations in India for the company as a result of the strong gas demand and associated robust gas price structure."
Cambay-73 will supply gas to a low pressure gas market near the field and is expected to produce around 50-60boepd (barrels of oil equivalent per day) of gas and condensate.
Earlier this month the firm released a resource upgrade validated the commercial development of the Cambay Field.
The Y zone at Cambay is now said to contain 2P (proved and probable) reserves of 206 Bcf (billion cubic feet) gas and 8 MMbbls (millions of barrels) of condensate (C5+).
Of this has a net working interest of 93 Bcf gas and 3.6 million barrels (MMbbls) of condensate.
Across two zones X and Y 2C contingent resources were 720 Bcf gas and 52.8 MMbbls of condensate of which ’s net working interest is 324 Bcf gas and 23.8 MMbbls.
At the end of the quarter the firm had cash of $2.7 million and is currently reviewing funding options for the Cambay 2015/16 work programme.
The establishment of 2P reserves at Cambay provides additional funding options including project finance which will be reviewed and assessed it said.
Proactive Investors Australia is the market leader in producing news articles and research reports on ASX emerging companies with distribution in Australia UK North America and Hong Kong / China.
Legal Disclaimer:
MENAFN provides the information “as is” without warranty of any kind. We do not accept any responsibility or liability for the accuracy, content, images, videos, licenses, completeness, legality, or reliability of the information contained in this article. If you have any complaints or copyright issues related to this article, kindly contact the provider above.