Oilex increases stake in Indian gas field

Oilex NL, Perth, has boosted its holdings in the Indian state of Gujarat by acquiring an additional 15% interest in Cambay gas field.

April 19, 2006

Rick WIlkinson
OGJ Correspondent

MELBOURNE, Apr. 19 -- Oilex NL, Perth, has boosted its holdings in the Indian state of Gujarat by acquiring an additional 15% interest in Cambay gas field. The acquisition brings its interest to 45%. The company also holds a 40% stake in each of the nearby Bhandut and Sabarmati gas fields.

The fields produce intermittently and at low rates from Tertiary-age reservoirs due to sand and water influx and declining reservoir pressure from formation damage.

Oilex believes the fields to can be redeveloped.

Oilex will pay $5.39 million to cover the costs already incurred by farmout partner Gujarat State Petroleum Corp (GSPC) and GSPC's former partner Niko Resources Ltd. The fields were discovered by India's Oil & Natural Gas Corp. and acquired by GSPC in 1995.