Primeline Prepares for Drill Stem Testing in East China Sea

25/34 in East China Sea
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Primeline announced that positive electric logging results have prompted Primeline to prepare for drill stem testing (DST) of potential reservoir zones in the LS 35-3-1 exploration well in Block 25/34 East China Sea.

At 8 a.m. May 6, 2010 China time, Primeline completed two runs of electric logging comprising gamma ray, sonic, spontaneous potential, resistivity and neutron-density logs over the interval from 1,383m to total depth (TD). Interpretation of the log data leads to the following preliminary conclusions

  • Target Zone 1: good thick sandstone sequence with no indications of hydrocarbons
  • Target Zone 2: sandstone sequence with limited indications of hydrocarbons
  • Target Zone 3: gross 60 m section of sandstone and mudstone interbeds with over 20 m aggregate of potential hydrocarbon pay in two zones. The initial interpretation indicates the presence of gas in these zones. There is no indication of a gas water contact on the logs.

Based on these results, Primeline has instructed China Oilfield Service (COSL) to mobilize DST equipment to the rig and prepare for testing.

Readers are cautioned that these electric log interpretation results are preliminary and running a DST does not necessarily mean producible hydrocarbons are present.

Primeline is currently conducting a formation evaluation logging program including Vertical Seismic Profiling (VSP), Reservoir Characterization Instrument (RCI -RFT) and side wall coring, before setting the 9 5/8 inch casing. The DST program will commence in about 7-8 days after the casing program. If two zones are tested it is anticipated that it will take approximately two weeks. Primeline will make further announcements on the final result of the DST. Primeline has agreed terms and will contract COSL for the DST on a per zone turnkey basis.

This exploration drilling operation is part of the step-out drilling campaign that Primeline is implementing as part of its rolling exploration and development strategy. Primeline and CNOOC are preparing for the development of Lishui 36-1 gas field following signing of development agreements with CNOOC on March 17. The LS 35-3-1 well location is approximately 15 km SW from the Lishui 36-1 gas field and is one of the several prospects identified by high quality 3D seismic data in the vicinity of the Lishui 36-1 gas field.


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