Sino Gas & Energy Plans to Drill 59 Wells in China's Ordos Basin

Sino Gas & Energy has announced that field operations for 2014 are well underway on its Production Sharing Contracts (PSCs) in the Ordos Basin, China and 285km of seismic acquisition completed in January is being interpreted.

This seismic completes the grid required for the first round of Chinese Reserve Report (CRR) submissions across both PSCs, the company said.

Sino Gas & Energy Limited is the operator of the Linxing and Sanjiaobei PSCs in the Ordos Basin, Shanxi province.

According to the company 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.

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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