Sino Gas & Energy Reports Significant Gas Flow from China CBM Well

Sino Gas & Energy Holdings Limited (SGE) on Monday announced successful testing of TB-2H, the second horizontal well drilled on the Linxing Production Sharing Contract (PSC) in Shanxi province in China.

The test was conducted to demonstrate the horizontal well deliverability of the reservoir in the northern area of the Linxing (West) block and achieved a sustained flow rate of 3.7 million standard cubic feet (MMscf) per day.

The well is estimated to be able to deliver a production rate of over 5.1 MMscf/day, the company said.

“TB-2H was drilled in the northern area of the Linxing contract area over 25km north of TB-1H. The successful result at TB-2H follows optimisation of the fracture stimulation treatment on vertical and deviated wells, which has seen a significant improvement in single well productivity ahead of pilot pipeline production scheduled to commence as early as November 2014,” the company added.

Sino Gas holds a 49% interest in SGE through the strategic partnership with MIE Holdings Corporation. SGE is the operator of the Linxing and Sanjiaobei PSCs in the Ordos Basin, Shanxi province.