Sino Gas & Energy reports significant flow rate at Linxing Production Sharing Contract

Sino Gas & Energy reports significant flow rate at Linxing Production Sharing Contract

SUBIACO, Western Australia -- Sino Gas & Energy Holdings has reported the successful testing of TB-2H, the second horizontal well drilled on the Linxing Production Sharing Contract (PSC).

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

After successfully drilling a 1,200 m horizontal section, a seven-stage frac job was conducted in a 7.8 m vertical pay zone. The test achieved a sustained flow rate of 3.7 MMscfd at a relatively stable flowing tubing head pressure of 1,494 psi. This rate was surface constrained and based on the expected field operating conditions at 200 psi, the well is estimated to be able to deliver a production rate of over 5.1 MMscfd.

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 km north of TB-1H. The successful result at TB-2H follows optimisation of the fracture stimulation treatment on vertical and deviated wells, which saw a significant improvement in single well productivity, ahead of pilot pipeline production, scheduled to commence in November 2014.