China

By OGJ editors
HOUSTON, June 15
– The Sunwing Energy Ltd. unit of Ivanhoe Energy Inc., Calgary, spudded the Zitong-1 horizontal exploratory well on the 1,031-sq mile Zitong block in China’s Sichuan Province.

The well is projected to fractured tight gas sands at 4,500 m at a cost of $14.5-17.5 million to drill, case, and test. Multistage fracs are planned. The well is on the 70-sq km Guan structure in the center of the block.

Ivanhoe holds 90% contractor interest in the block, and Mitsubishi Gas Chemical Co. of Japan holds the other 10%.

The second well on the block, Yixin-2, is to spud in July. It twins Sunwing’s 2007 Yixin-1, which flowed as much as 4 MMcfd of gas prior to test equipment failure. Yixin-2 will be directionally drilled to within 67 m of Yixin-1 at TD.

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