CAMAC Finds Drilling Success in China's Ordos Basin
CAMAC Energy Inc., a U.S.-based energy company engaged in the exploration, development and production of oil and gas, today announced preliminary resource estimates from its ZJS-02 well recently drilled in the downthrown block of the Company’s 175,000 acre Zijinshan Gas Asset.
The well penetrated a number of gas bearing intervals and based on petrophysical evaluation from a third party consulting company and in-house resource volume estimation, the gas resource initially in-place associated with the ZJS-02 drainage area alone is estimated at approximately 68 Bcf. Plans are being finalized to drill the next well (ZJS-03) late in the first quarter of 2011 on the upthrown block, which is larger than the downthrown block drilled in by ZJS-02. The Company estimates that the recoverable gas resource in its entire 175,000 acre Zijinshan Gas Asset at approximately 300 Bcf, based on volumetric calculations using regional data assumptions and preliminary Zijinshan field-specific data.
The Company’s Zijinshan Gas Asset covers an area of 175,000 acres in the Ordos Basin in Shanxi Province, the second largest petroleum-bearing basin in China. It is in close proximity to major infrastructure, including the West-East Gas Pipeline and the Ordos-Beijing Pipeline. CAMAC Energy owns 100% of the foreign contract interest in the Zijinshan production sharing contract, is the Asset Operator, and is in partnership with PetroChina CBM Co.
About CAMAC Energy Inc.
CAMAC Energy Inc. (NYSE Amex: CAK) is a U.S.-based energy company engaged in the exploration, development and production of oil and gas. The Company focuses on early cash flow and high-return global energy projects and currently has operations in Nigeria and, through its Pacific Asia Petroleum subsidiaries, in China. The Company's principal assets include interests in the Oyo Oilfield, an offshore oil asset in deepwater Nigeria that started production in December 2009, a 100% interest in the Zijinshan Block gas asset located in the Shanxi Province, China, and the Enhanced Oil Recovery and Production business in Northern China. The Company was founded in 2005 and has offices in Hartsdale, New York, Houston, Texas, Beijing, China, and Lagos, Nigeria.