OIL and gas explorer Oilex said it has significantly upgraded its gas reserves in India thanks to advances in extraction tecnology, sending its shares soaring more than 150 per cent yesterday.
Australia-based Oilex said yesterday it estimates the Cambay field in Gujarat holds 248bn cubic feet of gas with a 90 per cent certainty of being produced, up from the negligible amounts previously cited.
Oilex was the biggest riser in London yesterday, as the AIM-listed firm closed 125 per cent up at 18p. The company drilled a number of wells on the field between 2006 and 2008 and found hydrocarbons but they were in “tight” reservoirs that could not be commercially used.
Oilex believes the block now has significant commercial gas reserves, after using technology developed by companies extracting shale gas in North America.