Oilex has been endorsed by the Indian government for the sales from the Bhandut-3 well in the Bhundut field.
The company said the backing was a “critical milestone” for the field’s production.
The project will now gather the appropriate production facilities including a compressed natural gas (CNG) loading facility that will enable “bullet” trucks to be loaded for transportation on site.
Ron Miller, managing director, said: “We are very pleased to receive the endorsement from the Government of India to sell gas from Bhandut-3 and restart production from the field to provide gas to the local market.
“The contracted price was determined by a competitive bidding process and remains commercial-in-confidence. Oilex continues towards generating additional cash flow through increasing production from its assets in India.”
In August, Bhandut-3 flowed at a maximum rate of 6.5MMscfd through a 10mm choke with a flowing tubing head pressure of 1,190 psia during an isochronal test.