Oilex Ltd confirms that the Cambay Field is expected to have robust economics, despite the recent sharp drop in oil prices.
Initial production profiles modelled by the Company for the next three horizontal wells using the Cambay-77H data provide the following indicative value metrics per well:
The above modelling assumes a US$70 / Bbl oil and US$8 / MSCF gas price. The NPV calculation assumes utilisation of existing tax losses. Full field economics will be assessed after completion of the engineering studies, including determining the appropriate throughput rate for gas processing facilities. A well with 700m lateral and 9 fracs compares favourably with Oilex's previous commercial assessment for Cambay.