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Oilex shares soar as Cambay 77H flows light oil and condensate to surface

Published: 20:09 21 Jul 2014 AEST

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Oilex (LON:OXP) jumped 25% as it updated on the pivotal Cambay 77H well, which has now begun flaring gas and flowing light oil and condensate to surface following a successful fracking programme.

The company said that hydrocarbon flows through the ‘clean-up’ phase were strong, and Cambay 77H exhibits characteristics of a high performance well.

More definitive production testing will begin once the ‘clean-up’ phase is complete and all the water from the fracking programme has been recovered. Thus far 40% of the ‘frack water’ has now been recovered.

"We are very pleased that Cambay-77H is exhibiting all of the signs of a high performance well for Oilex. Flowback started very strongly and remains on track to take 2 to 3 weeks,” said managing director Ron Miller.

“The recovery of light oil/condensate with the gas under clean-up flow this early in the flow-back phase is considered positive and the hydrocarbon liquid volume exceeded our expectations. 

Oilex looks forward to commencing the production testing after sufficient frac fluids have been recovered from the well and the flow has stabilised."

Oilex shares were up 1.6p, 24.52%, trading at 8.12p each.

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