Sino Gas’ Joint Venture SGE holds a 49% working interest in each of the Linxing and Sanjiaobei PSCs. The two PSCs cover approximately 2,000km2 in the Ordos basin, China’s most prolific gas basin.
The Linxing PSC comprises 877 km2, including 722 km2 in Linxing West and Linxing East and 155 km2 of prospective CBM acreage in Linxing East. The Sanjiaobei PSC covers 1,056km2
SGE has developed extensive knowledge of the PSCs due to the benefit of over 160 wells drilled to date and extensive subsurface data, including 2D seismic, well test data, production history and a well progressed reservoir model. Sino Gas published its type curve with an Expected Ultimate Recovery (“EUR”) per well of 1.2 Bcf and is focused on improving well productivity (please refer to full details of the Development Plan released to the ASX on 30 October 2017).
By applying proven technologies, Sino Gas expects to increase the EUR and accelerate production from each well. The overall gross reservoir thickness is ~1,000 metres, consisting of five main reservoir units and over 16 producible zones. Technical studies are ongoing to increase completions across multiple reservoir zones, which could significantly increase comingled flow rates and EURs.
SGE has submitted first ODPs for both Linxing and Sanjiaobei in the fourth quarter of 2017 and obtained first ODP approval for the Linxing PSC in May 2018. Both PSCs are moving towards full field development.
SGE announced first pipeline pilot sales from both PSCs on 1 December 2014. The Ordos basin is proximal to high demand markets and SGE has developed a strong marketing strategy with a diverse portfolio of buyers and multiple offtake routes as. More details on the pilot program is available here.
At the joint venture level, Sino Gas is partnered with China New Energy Mining Limited (“CNEML”) who purchased their interest in SGE in 2016. At the PSC level, the joint venture operator is partnered with CUCBM (subsidiary of CNOOC) on Linxing and PCCBM (subsidiary of PetroChina) on Sanjiaobei. More details on Sino Gas’ partners are available here.
Historical testing results by zone from 2006 to 2018
|Zone||No. of Well Test||Average
|Max. Flow Rate
|Horizontal wells (middle zone)||4||1,145||3||5,493||9,775|