Ivanhoe Strikes Gas in China's Zitong Block
Ivanhoe's China-focused subsidiary, Sunwing, announced a significant gas discovery at Sunwing's Yixin-2 well in Southwest China.
Gas from the well flowed at rates of up to 13 million cubic feet per day, and averaged 9 to 10 million cubic feet per day during the initial 24-hour test period. Gas is flowing from the Xu-4 Formation, a well established gas-producing formation in the region.
"We're very pleased with these initial flow rates," David Dyck, President and COO of Ivanhoe, said. "The rates recorded from the Xu-4 Formation demonstrate the discovery's strong potential and are incentive for Sunwing to continue with further development of the Xu-4 formation, and other structures in the Zitong Block."
Following initial flow and pressure tests, the well has now been shut-in for pressure build-up.
Sunwing's 659,840-acre (1,031-square-mile) Zitong Block is in the Sichuan Province; the oldest and one of the most productive gas-producing regions in China. Sinopec and PetroChina have made significant gas discoveries from the Xu-2, Xu-4 and Permian formations in adjacent blocks.
"It has taken over ten years of perseverance and the application of industry-leading experience and know-how to reach this point," said Robert Friedland, Co-Chairman of Sunwing. "Demand for natural gas in China is continuing to out-pace supply and now Sunwing Energy is in an excellent position to help supply this burgeoning market on very favorable commercial terms through an established collection and distribution system."
Technical teams from Sunwing and PetroChina are working to develop a strategy to evaluate the Yixin structure, as well as the potential for further discoveries elsewhere on the Zitong Block.
Sunwing is the operator of the Zitong exploration block in Sichuan and holds a 90% Contractor Interest in a Petroleum Contract with PetroChina Company Limited. Mitsubishi Gas Chemical Company of Japan holds the remaining 10% Contractor Interest.
- Ivanhoe, SBM Team Up in Alliance for Offshore Heavy Oil Development (Mar 20)
- Ivanhoe Finalizes Transfer of Zitong Block to Shell China (Dec 27)
- Ivanhoe Inks MOU for China Block Sale (Jan 11)
Company: Sunwing Energy Ltd. more info
- Drilling Commenced at Sunwing's 1st Mongolian Exploration Well (Aug 16)
- Ivanhoe: Positive Gas Flows Recorded at Zitong Well (Apr 04)
- Ivanhoe Strikes Gas in China's Zitong Block (Dec 21)