Sino Gas & Energy takes flow rate recording from LXDG-04

Sino Gas & Energy Holdings Limited has announced that a flow rate of 2.1 million ft³/d has been recorded from an upper zone of the LXDG-04 exploration well.

Exploration well LXDG-04 tested at 2.1 million ft³/d from an upper zone in the prospective exploration area of the Linxing (East) Production Sharing Contract (PSC). This stable flow rate was recorded at a wellhead tubing pressure of 760 psi over a period of 48 hours and is in addition to the rate of over 600 000 ft3/d recorded in a middle lower zone previously announced in the 3Q15 Activities Report.

Sino Gas estimates LXDG-04 could produce over 3 million ft³/d at standard field operating pressures. Linxing (East) first reserve bookings expected in year-end reserve assessment LXDG-04 exploration well is the third well in the Linxing (East) exploration area to yield production test flow rates above commercial thresholds following positive flow tests achieved on LXDG-03 and LXDG-05.

LXDG-02 is currently being tested. In addition, as previously announced, good log results have been received from LXDG-06 with 57.8 m of net pay identified. LXDG-07 and LXDG-08 are currently drilling and, if successful, is planned to be tested in 2016 along with LXDG-06.

In Sino Gas' most recent independent reserve and resource report assessment, RISC estimated 924 billion ft³ of gross deep gas P50 Prospective Resources in the Linxing (East) area (276 billion ft³ net to Sino Gas), based on a prospective area of 334 km² as at 31 December 2014. From the results discussed above, Sino Gas expects the forthcoming assessment as at 31 December 2015 will result in the conversion of a portion of the prospective resources into the first reserve bookings for the Linxing (East) area.

The estimated quantities of petroleum that may potentially be recovered by the application of a future development project(s) relate to undiscovered accumulations. These estimates have both an associated risk of discovery and a risk of development. Further exploration appraisal and evaluation is required to determine the existence of a significant quantity of potentially moveable hydrocarbons.

Edited from press release by Angharad Lock

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