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Sino Gas to start horizontal drilling in Ordos Basin next month

10th April 2014

Sino Gas and Energy has announced this week that its Chinese operations are achieving expected output and that it should be starting horizontal drilling at some point next month.

Australia-registered firm, Sino Gas and Energy, has announced in its quarterly report published this week that its production sharing contracts (PSCs) in the Ordos Basin, China, are proceeding to plan.

285km of seismic acquisition completed in January is being interpreted by third-party contractors and is expected to be completed in Q2 2014. This seismic completes the grid required for the first round of Chinese Reserve Report (CRR) submissions across both PSCs.

A total of eight rigs have been mobilised and commenced drilling towards total depth. The wells are part of a 14 well exploration program designed to obtain drilling data required for the first round CRR submissions, which are expected to be completed in the second half of the calendar year. Up to 59 wells are planned to be drilled in 2014, the majority of which are expected to be tied into the pilot pipeline production program.

Testing teams arrived onsite in March and commenced frack testing in early April. Currently almost forty layers are expected to be tested as a part of the exploration program designed to complete the requirements for CRR submission.

Sino Gas’ first horizontal well is planned to be tested in May to allow fracking equipment to be fine-tuned initially on vertical wells after being held in storage during the winter break in operations.

Commenting on the commencement of field operation for 2014, Sino Gas’ managing director and CEO, Robert Bearden, said he was pleased after a successful 2013 work program delivered significant reserves and resources maturation that the field operations had commenced with the aim of completing first round CRR submission across both PSCs and the commencement of pilot pipeline production in 2014.

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