COSL Spuds LS23-1-1 Exploration Well in Block 33/07 in East China Sea

Primeline Energy Holdings Inc. (Primeline or the Company) disclosed Wednesday the drilling of its LS23-1-1 exploration well in Block 33/07 in East China Sea has commenced to tap into resources near its LS36-1 gas field production facility.

As recently announced, Primeline’s drilling contractor China Oilfield Services Ltd. (COSL) started to tow the drilling rig, HYSY941 or COSL 941 (400' ILC), Sept. 15. The rig arrived at LS23-1-1 Sept. 17 and the subsequent jackup and loading operation was successfully completed. LS23-1-1 was spud Sept. 23.

The LS23-1-1 well is in 266 feet (81 meters) of water in Block 33/07 in the East China Sea and is 15 miles (24 kilometers) from the LS36-1 gas field platform. The planned total depth of the well is designed to be 8,819 feet (2,688 meters) with several target zones in Palaeocene sediments. The drilling is scheduled to take approximately 30 days including logging. If hydrocarbons are discovered, additional logging or drill stem tests will be carried out.

LS23-1-1 is the first exploration well (of two) in Primeline’s current campaign as part of the rolling development program. Based on the result of this well, Primeline will finalize the drilling location of the second well in Block 33/07, which will be either LS30-3-1 or LS23-2-1. Any resources discovered in this drilling campaign can use or share the LS36-1 gas field production infrastructure to speed up development and optimize future development costs and economics.


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