Five cased-hole drill stem tests were planned to evaluate oil zones in the Sihapas Sandstone at this well location, which is in central Sumatra's West Kampar production sharing contract.

The first DST over the deepest interval produced fresh water with only minor oil indications.

"The DST 1 and 2 equivalent intervals in nearby wells did not flow oil and DST 1 has confirmed that the interval is a freshwater zone," Oilex said.

"DST 2 has been deleted form the program."

Yesterday the joint venture was preparing to undertake the third, fourth and fifth DSTs in zones analogous to those that tested oil in Pendalian-1, Oilex said.

Participants in the West Kampar PSC are: PT Sumatera Persada Energi (operator and 55%) and Oilex (45%).

In other company news, Oilex says a newly-built rig has arrived on location at the Cambay oil field, in India, and is preparing to mobilise to the Cambay-23Z location.

"This rig has significantly greater capacity to drill high angle deviated wells and wells to a greater depth, both of which functions are required at Cambay Field and will be very beneficial to the future drilling program on Bhandut Field for deeper targets and long-reach production wells," the company said.

Cambay-23Z was designed to test Oligocene and Eocene potential gas-bearing sandstone reservoirs.

"The deeper Eocene interval has an apparent direct hydrocarbon indicator of gas associated with it at this location,"the company said.

It is the first of 6 wells on Cambay Field that are approved for the next phase of drilling.