Sino Gas & Energy Holdings kicks off 2014 field work

THE ROADHOUSE BOSWER: Sino Gas & Energy Holdings (ASX: SEH) is progressing its field operations for 2014 on the company’s Production Sharing Contracts (PSCs) in the Ordos Basin, China.

The company has 285 kilometres of seismic acquisition completed in January being interpreted by third-party contractors, which it expects to be completed in Q2 2014.

Sino explained the seismic completes the grid required for the first round of
Chinese Reserve Report (CRR) submissions across both PSCs.

A total of eight rigs have been mobilised and commenced drilling towards total depth.

The wells are part of a 14 well exploration program Sino has designed to obtain drilling data required for the first round CRR submissions, which are anticipated to be completed in the second half of the calendar year.

The company plans to drill to 59 wells in 2014, the majority of which are expected to be tied into the pilot pipeline production program.

Testing teams arrived onsite in March and commenced frac testing in early
April.

Currently almost forty layers are expected to be tested as a part of the exploration program designed to complete the requirements for CRR submission.

Sino Gas has planned its first horizontal well to be tested in May to allow fraccing equipment to be fine-tuned initially on vertical wells after being held in storage during the winter break in operations.

Engineering for the surface gathering facilities is progressing on the first central gathering station, with additional equipment expected to be delivered early Q2 to complete the facility while the third-party pipeline spur is approaching completion.

“It is pleasing that after a successful 2013 work program delivered significant reserves and resources maturation that the field operations have commenced with the aim of completing first round CRR submission across both PSCs and the commencement of pilot pipeline production in 2014,” Sino Gas managing director and CEO Robert Bearden said in the company’s announcement to the Australian Securities Exchange.

Website: www.sinogasenergy.com