•  
  •  
  •  
  •  
  •  
  • Untitled Document
    Untitled Document

    Ivanhoe Energy targets tight gas with drilling at Zitong-1 in China

    Ivanhoe Energy Inc. announced that Sunwing Energy Ltd., the company's wholly-owned subsidiary, has commenced drilling at Zitong-1 located in Sichuan Province, China's most prolific gas producing region.

    Sunwing is the operator of the 659,840-acre (1,031 square miles) gas exploration block in Sichuan, and it holds a 90% Contractor Interest in a Petroleum Contract with PetroChina Co. Ltd. Mitsubishi Gas Chemical Company of Japan holds the remaining 10% Contractor Interest.

    Zitong-1 is targeting the Guan structure, a massive 70-square-kilometre structure in the centre of Sunwing's block in Sichuan. Zitong-1 will target tight gas in fractured formations using horizontal drilling and established, multi-stage fracing technologies similar to those that have led to enormous gas developments in various tight gas projects in North America. Each target in the Guan structure is estimated to have potential of 0.3 to 0.5 trillion cubic feet of natural gas.

    Total depth of the Zitong-1 well is planned to be approximately 4,500 metres and it is expected to take up to six months to drill and test the well. Zitong-1 is expected to cost US$14.5 million to US$17.5 million which includes plans to drill, test and case the well.

    Yixin-2 - second well to begin drilling in July
    Preparations for Sunwing Energy's second well location, Yixin-2, in the Zitong block are also under way and Sunwing expects to commence drilling this well in July 2010. Yixin-2 is being drilled as a twin well of Yixin-1, a well drilled by Sunwing in 2007 that generated flow rates of up to 4.0 million cubic feet per day before being shut down due to certain equipment failures during the testing program. Yixin-2 will be directionally drilled to allow the second wellbore to be located within 67 metres of the Yixin-1 at total depth.

    Gas targets in the range of 0.3 to 0.5 trillion cubic feet
    While Zitong-1 and Yixin-2 are targeting structures with natural gas potential in the range of 0.3 to 0.5 trillion cubic feet, any gas test with a minimum flow rate of 0.7 mmcf/d for eight hours will allow Sunwing to declare a commercial discovery. According to the terms of its Petroleum Contract, upon declaration of a commercial discovery, Sunwing is permitted to develop any of the various previously drilled structures on the block. These structures were drilled without the benefit of current technology and Sunwing's ability to access these additional structures would significantly enhance the value of the Zitong block.

    "This is clearly an exciting time for us given the high-impact potential of these wells," said Gerald Moench, president of Sunwing Energy. "Any drilling success will have the potential to dramatically change the growth profile for Sunwing and Ivanhoe Energy."

    Sichuan is the oldest and one of the most prolific gas producing regions of China. Sinopec and PetroChina have made significant gas discoveries from the Xu2 formation in blocks adjacent to Sunwing's Zitong Block. Any gas produced in Zitong will be fed directly into an existing regional gathering and sales distribution system.

    Most Popular

    Related Articles

    NUTECH signs alliance with UKOG

    03/16/2015

    NUTECH, which provides petrophysical analysis and reservoir intelligence, has signed an alliance and consulting services agreement with London-listed UK Oil & Gas Investments PLC (UKOG).

    Shell retreats from shale projects in South Africa

    03/16/2015

    Due to the oil price plunge, Royal Dutch Shell is retreating from its shale projects in South Africa, according to Reuters.

    Oil and gas security

    03/11/2015

    Standardization and continuity in security risk assessments improve decision-making

    Lion Energy to conduct unconventional joint studies in Sumatran Basin

    03/03/2015 Lion Energy Ltd. has received formal approval from the Directorate General of Oil and Gas (MIGAS) of the award of two separate unconventional joint studies over two highly prospective areas in Indo...

    Chevron exits shale gas exploration in Romania

    02/24/2015 Chevron, which began shale gas drilling at its exploration well in northeastern Romania in 2014, has exited this exploration, according to Bloomberg, which says that Chevron is also ending its thre...

    Sinopec to lead new national shale oil R&D center in China

    02/10/2015

    Sinopec will head up China’s new National Shale Oil R&D Centre – an innovation platform approved by China’s National Energy Administration.

    More Oil & Gas Financial Articles

    NUTECH signs alliance with UKOG

    Mon, Mar 16, 2015

    NUTECH, which provides petrophysical analysis and reservoir intelligence, has signed an alliance and consulting services agreement with London-listed UK Oil & Gas Investments PLC (UKOG).

    Shell retreats from shale projects in South Africa

    Mon, Mar 16, 2015

    Due to the oil price plunge, Royal Dutch Shell is retreating from its shale projects in South Africa, according to Reuters.

    Oil and gas security

    Wed, Mar 11, 2015

    Standardization and continuity in security risk assessments improve decision-making

    Lion Energy to conduct unconventional joint studies in Sumatran Basin

    Tue, Mar 3, 2015

    Lion Energy Ltd. has received formal approval from the Directorate General of Oil and Gas (MIGAS) of the award of two separate unconventional joint studies over two highly prospective areas in Indonesia’s North and Central Sumatra basins.

    Chevron exits shale gas exploration in Romania

    Tue, Feb 24, 2015

    Chevron, which began shale gas drilling at its exploration well in northeastern Romania in 2014, has exited this exploration, according to Bloomberg, which says that Chevron is also ending its three other concessions in Romania.

    OGFJ photo of the day


    Click to view slideshow

    Oil & Gas Jobs

    Search More Job Listings >>
    Subscribe to OGFJ