Petromin Resources announce that further to the project update provided on November 16, 2009, TerraWest Energy Corp., has successfully completed the 2009 drilling, sampling and testing programs at the Liuhuanggou Project in Xinjiang, the People's Republic of China ("PRC").
TWE completed three (3) coalbed methane ("CBM") test wells with total meterage of 2,316 metres (7,642 feet) on the Liuhuanggou Project acreage in December 2009. As previously reported, two (2) of the wells were planned to core complete sections of the Jurassic Badaowan (J1B) formation in order to provide samples of all the prospective coals seams and surrounding prospective geologic sequences in the J1B.
The third well was planned to drill and core the Jurassic Xishanyao ("J2X") formation for further testing of the very thick target coal seam.
All wells were completed as planned, on time and on budget. Multiple samples were taken for further analysis and the wells were geophysically logged. Further details of the drilling program results will be provided in due course.
The gas flow test at well LHG 08-01 was completed as planned. The pilot test was operated for over 30 continuous days and produced water and gas from a 30-metre (99 feet) section of the J2X coal seam at a depth of 750-780 metres (2475-2575 feet). As previously reported, well LHG 08-01 had been cased and cemented to the top of the target coal seam in 2008 and in the current test water and gas were pumped from the open drill hole without any stimulation or fracturing of the coal seam. Produced gas was flared.
Project management of the drilling was provided by Norwest Corporation under the direction of Dr. Yulin Li, senior resource scientist. TWE utilized local drilling contractors, mud loggers and geophysical contractors for the drilling assignment. The follow-up laboratory work will be provided by laboratories in Xinjiang, the PRC, Calgary, Canada and Salt Lake City, USA.
The pilot gas flow test was managed by TWE's production engineer from Calgary, Canada and assisted by local production engineers. An experienced Xinjiang oilfield contractor provided a variety of support services and equipment. Norwest Corporation provided specialized CBM engineering consulting to the pilot operations.
All 2009 operations were completed injury-free.
TWE, as required under the Liuhuanggou CBM Production Sharing Contract ("PSC"), has now completed its initial phase exploration period obligation of drilling nine (9) exploration wells and has exceeded the minimum exploration period spending obligations to date. The next phase of exploration is drilling and operating pilot testing wells. TWE has already initiated pilot work by conducting the gas flow test and initiating engineering designs for pilot well completions in target formations.
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