(MENAFN- ProactiveInvestors)
(ASX:OEX LON:OEX) has confirmed the start of gas sales from the Cambay field in India.
Production from the Cambay-73 well has now come online and has shown it is capable of producing significantly above expectations the company told investors.
Cambay-73’s average daily production rate is around 50 barrels oil equivalent per day and the well has demonstrated deliverability in excess of 95 boepd during start-up operations it added.
Output is expected to ramp-up with the ongoing development of the Cambay field; which will see the 77-H well come online and five additional work-over wells. Gas production is also expected from the start-up of the Bhandut 3 well.
"The commencement of gas production from Cambay-73 facilities is a significant milestone for and marks the first step on the path to achieving positive cash flow from operations in India” said managing director Ron Miller.
“ continues to deliver on its plan of production near-term cash flow and reserves growth to create a sustainable business in the midst of a robust and supportive domestic market for petroleum energy."
The company is now targeting ‘cash flow positive operations’ in India by the end of 2015.
The company highlighted today that demand for gas from local light industrial businesses is ongoing with expressions of interest received by from buyers. Also liquid gas condensate produced from the gas well is being sold to a nearby refinery.
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