Oilex will become the operator and earn its 30% working interest, awarded by Gujarat State Petroleum Corporation (GSPC) and Niko Resources, by undertaking appraisal and development work.

The Cambay field was discovered and developed initially by Oil & Natural Gas Corporation (ONGC) in 1957-58.

Hydrocarbons were found in Oligocene and Eocene sandstones around 1550m below. Subsequently, 62 wells were drilled to develop and produce gas from one Oligocene reservoir – a small volume of oil from a deeper reservoir below 1730m and gas from a shallower Miocene reservoir around 1420m.

In 1991, the field was virtually shut-in because of sand and water influx and decline in reservoir pressure after producing about 48% of the operator’s estimated reserve, according to managing director Bruce McCarthy.

The field was subsequently acquired by the GSPC and Niko joint venture in 1995 and continued to produce gas at low rates and, in recent years, small volumes of oil.

Oilex said it has undertaken a detailed study of existing well data to prepare recommendations for a work program to re-develop the field. The results of the studies and recommendations will be presented to the JV in early April.

“In the event that the joint venture approves those recommendations, personnel and contractual arrangements for drilling materials and equipment are in place to facilitate the start of operations at the earliest opportunity,” McCarthy said.