Commercial options under investigation include the possible sale of off-spec gas from the well.
The company operates the Bhandut JV and holds an attributable 40% interest in the estimated contingent resource of about 100MMscf.
Interested parties have been approaching the JV about procuring gas from the well ever since the Indian Government announced an increase in the base gas domestic price to about $8 per Mcf to encourage investment in indigenous gas supplies.
Oilex said the potential buyers are considering the use of compressed natural gas bullet trucks to ship natural gas from the well head in the field to end users.
This is expected to provide flexibility to adjust the offtake rate between 0.5-1MMscfd to suit the deliverability of Bhandut-3 gas sand over time.
Oilex managing director Ron Miller said, "With infrastructure in place at Bhandut-3 – including bullet trucks provided by the buyer for transportation – the incremental cost of additional gas sales is small."
Dynamic production test flow and pressure data suggested the best estimate contingent resource of about 250MMscf.
