Sino Gas and BHDC in Sanjiaobei agreement

Australia’s Sino Gas & Energy has signed a strategic cooperation framework agreement with the Bohai Downhole Drilling Company (BHDC) relating to the development of the Sanjiaobei PSC project.

BHDC is a subsidiary of CNPC, the Chinese Oil and Gas major, and a full service provider of gas and oilfield services throughout China and in international markets.  

BHDC has oil and gas projects in China including the Dagang and Huabei oil fields and the Sulige gas field, in cooperation with CNPC and international oil and gas major TOTAL.

Sino Gas said the agreement with Bohai Downhole Drilling Company (BHDC) was part of the process of completing the Chinese reserves report and overall development plan for the project.

BHDC has already drilled three wells for Sino Gas and is currently completing the SJB2 well.

The compnay said that the SJB2 well had reached total depth and initial analysis of the logs indicated the presence of gas in multiple pay zones.

It will now take side wall core samples from those zones in order to determine an appropriate testing program for the well.

The company also revealed it had successfully fracture stimulated a lower pay zone in the SJB1 well and is currently flowing back the frac fluid from the zone to determine a stable flow rate.

The Sanjiaobei PSC lies in China's Ordos basin and is estimated to hold 1.15 trillion cubic feet in reserves and contingent and prospective resources.