The company has also outlined drilling and farmout programs in the Cooper and offshore Otway Basins.
Oilex managing director David Archibald resigned in early February after the Rookwood discovery failed to live up to initial promise.
New managing director Bruce McCarthy, appointed later that month, said his immediate priority would be to review all of Oilex's existing Australian exploration permits
Oilex advises that production testing and reservoir evaluation is continuing at Rookwood South-1 well in ATP 608P.
Rookwood South-1 was put on production test in November 2004 and the current production rate is approximately 50 barrels of oil, based on 15 hours of pumping every two to three days. More than 1600 barrels of oil were produced in the March quarter, with total cumulative oil production of 3142 barrels to 31 March 2005. All oil produced is currently being sold to Inland Oil.
“Oilex has commissioned reservoir and production engineering work to determine the potential sustainable production of the Rookwood Field, including any remedial action that can be taken to improve production flow rates,” the company said in a statement.
“Poor seismic data coverage over the area limits the benefit of further mapping of the Rookwood Field. A recommendation for further work is anticipated to be ready during May 2005.”
Meanwhile the company has hopes that the so-called Remainder Block will deliver where Rookwood failed.
“An independent review of ATP 608P commissioned by Oilex has identified structural prospects in ATP 608P to the south-east of the Rookwood Block,” the company said.
“The Pinnacle Prospect (formerly referred to as the Tailor Prospect) has been identified as the largest mapped structure with a closure of 8.4 sq km. A smaller prospect named West Pinnacle (formerly referred to as the Nicole Prospect) on the broader Pinnacle structure is a clear follow up target to any success at Pinnacle.”
Oilex estimated unrisked oil in place reserves at about 10 million barrels for the Pinnacle Prospect and 2.8 million barrels for the West Pinnacle Prospect.
“Subject to rig availability and joint venture approval, Oilex as operator anticipates these prospects being drilled in the June 2005 quarter,” the company said.
Interests in the Rookwood Block are Oilex NL 59.06%, Victoria Petroleum NL 29.69% and private interests 11.25%. Interests in the Remainder Block are Oilex NL 66.75%, Victoria Petroleum NL 24% and private interests 9.25%.
In Cooper Basin lease ATP 794P, Oilex said it was anticipating final sign off by all NativeTitle participants by the end of April covering the grant of ATP 794P (formerly ATP 589P). Following which Oilex will expedite the drilling of Barcoo Junction North-1 well (Oilex 88%). Oilex will also drill the Moothendella Prospect (OEX 40%) following seismic reprocessing by Bow Energy Ltd. It is anticipated that these wells will be drilled within six months of grant of title.
In offshore Otway Basin permit EPP 27 (OEX earning 60%) the company has completed a farm-out package to attract a partner to participate in drilling.
“Significant interest is being shown by a number of larger companies,” Oilex said.
“The farmout effort is being focused on the area covered by the 3D seismic survey completed by Woodside, targeting structures in the range of 150-340 mmbls volume within the greater Cobana closure. Drilling is anticipated to be undertaken in the second half of 2005, subject to rig availability and weather.”
The company also said it was undertaking ongoing evaluation of its other permit areas and pursuing farmin opportunities into drillable prospects in other areas.
