Triple Energy Makes Slow Progress in Niaoshan-1 Drilling in China

Triple Energy Ltd., an Australian oil and gas exploration company, provided Tuesday the following update on the drilling activities on its Aolong Joint Venture project in China's Heilongjiang province.

Niaoshan-1 Well

As of 10 am Aug. 24 the Niaoshan-1 well had reached a depth of 2,900 feet (884 meters) (measured depth) and had intersected the first of several prognosed coal seams (known as Seam #3).

The coal seam was intersected at a depth in-line with pre-drill prognosis, a 24.9 foot (7.6 meter) coal seam was intersected and cored. Coring recovery was 75 percent with 18.7 feet (5.7 meters) of core retrieved and containerized, as planned. The collected core samples have been secured into air-tight containers and sent to a laboratory for detailed analysis of gas content and reservoir characterization.

The well is currently being prepared to run a Drill Stem Test (DST) as planned. Once this has been done, the well will drill ahead to the next main prognosed coal seams which are interpreted to occur just below 3,281 feet (1,000 meters). Selected seams are planned to be similarly cored and tested as has occurred for Seam #3 above.

The well has a design depth of around approximately 4,1667 feet (1,270 meters).

Yixin-1 Well

Given that progress has been slower than expected in drilling the Niaoshan-1 well, primarily due to difficult to drill geology, a second rig has been procured by the Joint Venture and is being mobilized to the site of the second well, Yixin-1. The well pad and access roads have already been prepared such that the rig can be set-up immediately on arrival.

The second rig is being mobilized from South China and hence is expected to be on site in around a week’s time given the significant travel distance.

The second well is planned to be drilled to a depth of around 3,346 feet (1,020 meters) and is targeting multiple coal seams of which selected seams will be cored, tested, fracced and production tested. Consequently, the two wells will be drilled in parallel as soon as the second rig arrives on site and is set-up for drilling.


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