Sino Gas & Energy Holdings Limited provided the following update on the work program for the Linxing (31.7%, Sino Gas) Production Sharing Contract (PSC), located in the Ordos Basin, Shanxi Province, People’s Republic of China.
Three drilling rigs are now on location with a fourth rig to be added in late September. The Linxing East seismic work program continues with over 40% of the 170km data acquisition program completed. The drilling program is on schedule and to date:
The 2012 work program for Linxing East is comprised of a total of eight new wells, with an additional deep exploration well expected to be drilled following the analysis of seismic results. Each well is anticipated to take approximately 45 days to complete an extensive drilling and coring program.
After dewatering, each well will be flow tested for approximately 12 weeks. Seismic data gathered during the work program, along with drilling data and flow test results, will be used as inputs for a Chinese Reserve Report. Preparing a Chinese Reserve Report is the first step in a two-step regulatory process to develop coal bed methane assets into producing fields, culminating in the preparation of an Overall Development Plan approval for a PSC which leads to full field development.
Sino Gas’ Managing Director & CEO, Robert Bearden said: “Progress continues on field development at Linxing East and a substantial portion of the seismic program is now complete. In addition to the work at Linxing East, testing and drilling of two deep wells in Linxing West is also proposed. We are also advancing the planned LNG pilot program on Linxing West, and will provide another market update by month end.”
[mappress] LNG World News Staff, September 06, 2012; Image: Sino Gas & Energy