Singapore-listed RH Petrogas Limited disclosed Friday that its unit Kingworld Resources Ltd. (KRL) is shelving drilling plans for the Fuyu 1 Production Sharing Contract (PSC) in the Songliao Basin, Jilin Province, China to optimize its capital spending due to low oil prices.
"There were no material development activities being undertaken during the period under review. The Company will continue to monitor the oil market and review its drilling plan accordingly," the company said in the announcement.
KRL has drilled 29 development wells since the Chinese government approved the development plan for Fuyu 1 PSC, which covers an area of approximately 98 square miles (255 square kilometers).
In the November 2015- January 2016 quarter, RH Petrogas said the development expenditure for the Fuyu 1 PSC amounted to $472,000, with fixed assets and administrative expenses totaling $98,000 and $155,000, respectively.
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