Oilex to suspend Indian well, shares plunge
* Says log analysis indicates presence of water with gas
* Shares fall 28 pct
May 7 (Reuters) - Australia-based Oilex Ltd (OEX.AX) (OEX.L) said on Thursday the Cambay-75 appraisal/development well in India would be plugged back and suspended as log analysis indicated the presence of water with gas, although high gas readings were recorded.
The Cambay-75 well has reached a total depth of 1,580 metres and wireline logging operations have been completed, the company said.
Analysis of the well results will be incorporated into the geological model to determine further potential well locations for both oil and gas, Oilex said.
The company said the primary objective of Cambay-75 is the Miocene Basal Sand reservoir which is producing in the nearby Cambay-64 and Cambay-74 wells.
Oilex operates and holds a 45 percent interest in the block while Indian company Gujarat State Petroleum Corp Ltd (GSPT.BO) holds the other 55 percent.
Oilex shares were down 3.75 pence at 9.5 pence at 0745 GMT on the London Stock Exchange. (Reporting by Balachander Surianarayanan in Bangalore; Editing by Mike Miller)
