Shell, Sinopec Drilling Shale Wells in Central China

Royal Dutch Shell and Sinopec Corp are drilling exploration wells to gauge the shale potential in central China, news agency Reuters reported Thursday citing company officials.

According the news agency the two companies have completed drilling Liye-1 at Xiang E Xi (XEX) block at the junction of central Hunan, Hubei and Jiangxi provinces in east central China. The plan is to drill three wells in total.

A Sinopec official told Reuters that Liye-1 well was completed last August but was subsequently sealed after results were not favourable.

The second well Engye-1 is now being drilled and the third is also planned.

In March, the Chinese government approved a production sharing contract with Shell for the Fushun shale gas block in southwest China's Sichuan province.

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