Oilex shares rose Thursday as it announced a gas sales agreement (GSA) with an Indian public limited company for the Cambay Basin in the country.
The oil and gas company said it has signed a deal with the undisclosed company for off-spec gas production from the Cambay-73 well in the Cambay Basin, a joint venture with Gujarat State Petroleum Corporation.
The two year contract has been submitted to Gujarat government bodies and the India government for approval. Oilex said the contract price was confidential until government endorsement.
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Production from Cambay-73 is expected to begin within two months of government approvals, followed by immediate gas sales.
Initial gas volumes are estimated at 200m standard cubic feet per day.
"The signing of the GSA is an important milestone for the company as Oilex delivers production from our India assets," said Acting Managing Director, Ron Miller.
"It also demonstrates the strong demand and excellent commercialisation opportunities for gas producers in the Cambay Basin which is ideally located in the industrialised state of Gujarat."
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