Sino Gas speeds up coal seam gas drilling at Ordos

2012-11-12

Sino Gas & Energy Holdings has started new drilling for coal seam gas at its Production Sharing Contracts in China's Ordos Basin, having brought forward part of next year's seismic program into fourth quarter this year.

Sino Gas has spudded two wells at its Linxing East PSC with the wells approaching total depths. Two additional rigs have been mobilised to spud two additional wells, which are expected to reach total depths of 1000 metres and 870 metres respectively.

Following completion of drilling, testing and dewatering will be done over the coming months.

An additional well site is being prepared in the south west for drilling to test the resource potential.

Sino Gas has also spudded the first well of the planned two well program on Linxing West. That well will be drilled to a total depth of 2200 metres and targets increasing existing production capacity ahead of planned pilot programs in 2013.

The company has already brought forward part of the 2D seismic from next year's work program, with half of the planned 350 kilometres seismic already done.

Sino Gas has is focused on developing coal seam gas in China through a strategic partnership with MIE Holdings. The two PSCs are jointly held by China National Petroleum Corp and CUCBM.

The PSC, located in the Ordos Basin cover an area of about 3000 square kilometres. The Ordos Basin is the second largest onshore oil and gas producing basin in China.

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