The Linxing PSC is split into Linxing East (1,301 km2) and Linxing West (573 km2). Sanjiaobei covers 1,123.93 km2.
As part of the exploration and appraisal campaigns up to 31 December 2013, the company had acquired over 2,000km of seismic and drilled 58 wells. This has contributed to significant increases in independently evaluated reserves, contingent resources and prospective resources on both blocks. Data from pilot and exploration programs in 2014 are expected to contribute to the maturation of resources and further expand the reserves area. Following the completion of the 2014 work program, in total, 2,620 km of seismic had been acquired and 94 wells have been drilled. See full Reserves and Resources details and disclosure here.
With world class quantities of natural gas now proven, the company’s focus has moved to securing necessary regulatory approvals and bringing on production, initially through pilot programs on both blocks followed by full field development. Sino Gas achieved a crucial step towards this goal in mid-2013 with the signing of our first Gas Sales Agreement on Linxing, approval of the first Chinese Reserve Report mid-2014 and pilot production commencing in December 2014.
Sino Gas announced first pipeline pilot sales from both PSCs on 1 December 2014. The pilot program completes the value chain and is designed to provide valuable information on the long term sustainable reservoir productivity to assist in planning the full field development. More details on the pilot program is available here.
A key component of the Sino Gas’ ongoing success is its strong partners. At the joint venture level, it has been partnered with China New Energy Mining Limited (“CNEML”) since 2012. At the PSC level, the joint venture operator is partnered with CUCBM (subsidiary of CNOOC) on Linxing and PetroChina CBM (subsidiary of CNPC) on Sanjiaobei. More details on Sino Gas’ partners are available here.
The Historical testing results from 2006 to Q4 2014 on Linxing West and Sanjiaobei are shown in the table below (as of 31 December 2014).
|Zone||No. of Well Test||Average
|Max. Flow Rate
|Horizontal wells (middle zone)||2||N/A||2||7,442||9,775|