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Sino Gas flows oil at Linxing horizontal drill onshore China

27th October 2014

Sino Gas & Energy has successfully tested TB-2H, the second horizontal well drilled on the Linxing Production Sharing Contract (PSC)

Sino Gas flows oil at Linxing horizontal drill onshore China
The well will be shut-in and suspended as a future producer

The test was conducted to demonstrate the horizontal well deliverability of the reservoir in the northern area of the Linxing (West) block.

“This is an excellent result from only our second horizontal well and underscores the field-wide deliverability of this reservoir,” said Glenn Corrie, Sino Gas CEO.

“The consistently strong rates observed from our two horizontal well tests provides confirmation that horizontal well technology can be applied to optimise the field development plan and have a positive effect on project economics.”

After successfully drilling a 1,200-metre horizontal section, a seven-stage frac job was conducted in a 7.8-metre vertical pay zone. The test achieved a sustained flow rate of 3.7 million standard cubic feet (MMscf) per day at a relatively stable flowing tubing head pressure of 1,494psi.

This rate was surface constrained and based on the expected field operating conditions at 200psi, the well is estimated to be able to deliver a production rate of over 5.1 MMscf/day. The well will be shut-in and suspended as a future producer. A small volume of liquid condensate was recovered during the test.

TB-2H was drilled in the northern area of the Linxing contract area over 25 kilometres 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 will provide a comprehensive update of activities within the quarter in its Q3 2014 activity report.

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