Shares of Oilex (LON: OEX) have jumped over 5% Friday after it told investors it has been awarded a well management contract for the Cambay field development in India, with a consortium comprising Manan Oilfield Services and Bedrock Drilling.
Under the contract, Manan and Bedrock will manage the re-fraccing of an existing well during Q1 2022 and the drilling of two new fracced wells during H2 2022.
The aim of the re-fraccing of the well is to confirm the ability to achieve production rates of 3-5 times the well's current production volume.
Once the re-fraccing of the well is successful, it will be followed by the drilling and fraccing of two new horizontal wells in the second half of 2022 to establish gas sales into the high-pressure grid.
Oilex stated that all plans are subject to securing the necessary funding and the Indian Government's ratification of the transfer of 55% participating interest from GSPC to Oilex.
Oilex's CEO, Roland Wessel said: “The award of the PMC contract follows an extensive review of the field development options and an assessment of the technical and operational requirements for the successful development of the extensive EP-IV resources. I am confident that the Manan / Bedrock consortium and Oilex partnership will result in the “unlocking” of the value of the Cambay field.”
Oilex shares are currently priced at 0.217p.
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