Cambay basin in Guj holds 206 Bcf gas in one zone: Oilex

Aussie oil and gas explorer Oilex today said its Cambay basin discoveries in Gujarat hold 206 billion cubic feet (Bcf) of gas and 8 million barrels of condensate reserves in just one zone.
"RISC Operations, an Australia-based, internationally recognised independent petroleum advisory group, has completed an resource report of the Eocene Formation of the Cambay Field," Oilex said in a statement.
The Y zone in the Cambay block holds "2P reserves (proved and probable) of 206 Bcf gas and eight million barrels of condensate," it said.
Oilex said Unrisked Contingent Resources in zone Y together with another zone, X, comes to 720 Bcf gas and 52.8 million barrels of condensate.

In oil and gas terminology, 2P reserves as considered more accurate with 50 per cent certainty of being recovered or produced. Contingent resource have only 10 per cent chance of being produced.
The Cambay block has a third zone, Z and contingent resource across the three zone may be as high as 12 trillion cubic feet.

Oilex Managing Director Ron Miller said the new estimate on the X and Y zones would provide a strong foundation for the immediate development of the Cambay field.
The 2P Reserves validate the forward program for commercial development of the Cambay Field, it said.

Oilex expects to begin production from the Cambay-73 well in May and is also working towards production from the recently drilled Cambay-77H well.
It plans to drill up to four wells this fiscal.
The Cambay Field is located around 10 km from the gas pipeline network with spare capacity. "The pipeline connection to the high pressure grid will be constructed and owned by a third party, which may be an affiliate of Oilex's joint venture partner, Gujarat State Petroleum Corporation. Timing of construction has yet to be determined," it said.
The 2P Reserves are anticipated to support a plateau gas production rate of 50 million standard cubic feet per day, whilst together with contingent resources the plateau gas production rate of could be 125-250 million standard cubic feet per day.

"Studies, yet to be completed, will determine an optimum field gas production profile and incorporate data from wells drilled as part of the 2015/16 budget," the statement said.