Oilex sees Cambay production soon
Oilex says it expects to begin production on its joint venture Cambay-73 project in India in May.
The company said today oil and gas production facilities at Cambay were now 77 per cent complete.
"The electrical system installation is almost complete while mechanical fabrication is 82 per cent complete," the company said in a statement.
"Various pre-commissioning activities should commence next week and costs are forecast to be within budget despite some delays in equipment delivery.
"Connection of the low pressure gas pipeline system to the plant is the responsibility of the gas buyer and is expected to be completed during April."
Managing director Ron Miller said it would be the first gas produced and sold from the Y-zone formation within the Cambay contract area and it would be the first gas sold from the Cambay Field in more than 23 years.
"Commercial production from Cambay-73 is a key initial step to achieving the company's objective of becoming cashflow positive from operations in India in the second half," he said.
Oilex is operator of Cambay and holds a 45 per cent interest in the 161sqkm project which is in Gujarat State, the industrial heartland of India.
Oilex shares were up half a cent, or 11.11 per cent, to five cents at 12.35pm.
