Sino Gas Spuds Sanjiaobei PSC
Sino Gas & Energy Holdings Limited announced on Monday spudding of its new SJB1 appraisal well on the Sanjiaobei Production Sharing Contract (PSC).
The spudding of SJB1 follows the completion of the acquisition and preliminary interpretation of 410.5 km' of new seismic on the Sanjiaobei PSC, the interpretation of which is being finalized by the company with the seismic contractor and the National Centre for Coal Bed Methane (NCCBM).
NCCBM was appointed by Sino Gas to deliver the Chinese reserves report on the Sanjiaobei PSC.
The location for SJB1 has been selected to evaluate and confirm the potential extension to highly productive pay zones encountered elsewhere on Sino Gas's acreage.
Commenting on the progression of work being undertaken on the Sanjiaobei PSC, which is now at 274 m, Sino Gas Managing Director, Stephen Lyons said that the completion of the seismic program "on time and within the budget" represented a major milestone in the progress toward development of the 1,100 km2 Sanjiaobei PSC.
While the company is currently working with its independent reserves and resources assessor to quantify the impact of the new seismic and will release this review when available, its own analysis suggests the potential for a significant increase in Sino Gas's resource base, Lyons claimed.
Following the mobilization of all equipment and requisite HSE checks, Sino Gas confirmed the acceptance of the rig from its drilling contractor CNPC Bohai Drilling Engineering Company Ltd (BDEC).
As per the drilling program, the well will now be drilled to a total depth of around 2,100 meters and then electronically logged and cased, which might last around 30 days.
Once drilling is complete and the analysis of the electronic logs over, the company plans to test potential pay zones. Weather permitting; the BDEC rig will drill up to 2 additional wells on the Sanjiaobei PSC this year.
Sino Gas & Energy Holdings Limited is an Australian company focused on developing Chinese gas assets. The Company has operated in Beijing since 2005 and holds a portfolio of unconventional gas assets in China through Production Sharing Contracts (PSC's).
Sino Gas which is the operator on the Sanjiaobei PSC,has been working closely with its Chinese partner CNPC