Ivanhoe unit starts drilling for tight gas in China

Eric Watkins
OGJ Oil Diplomacy Editor

LOS ANGELES, June 17 -- Ivanhoe Energy Inc. said its wholly owned subsidiary, Sunwing Energy Ltd., has started drilling at Zitong-1, a 1,031-sq-mile gas exploration block in China’s Sichuan province, targeting the Guan structure in the center of the block.

Ivanhoe said Zitong-1 will target tight gas in fractured formations using horizontal drilling and established multistage fracing technologies similar to those that have led to gas developments in North American tight gas projects.

Each target in the Guan structure is estimated to have potential of 300-500 bcf of gas, Ivanhoe said. It added that plans call for the Zitong-1 well to reach 4,500 m.

Drilling and testing the well will take as long as 6 months, at a cost of $14.5-17.5 million, which includes plans to drill, test, and case the well.

Meanwhile, Ivanhoe said preparations for Sunwing’s second well location, Yixin-2, on the Zitong block, also are under way. Sunwing expects to start drilling this well in July.

Yixin-2 is being drilled as a twin of Yixin-1, a well drilled by Sunwing in 2007 that generated flow rates of up to 4 MMcfd before being shut down due to equipment failures during the testing program.

Ivanhoe said Yixin-2 will be drilled directionally to allow the second wellbore to be within 67 m of the Yixin-1 at total depth.

While Zitong-1 and Yixin-2 are targeting structures with gas potential ranging 300-500 bcf, any gas test with a minimum flow rate of 700 Mcfd for 8 hr will allow Sunwing to declare a commercial discovery.

Sichuan is one of the most prolific gas producing regions of China, according to Ivanhoe which said Sinopec and PetroChina have made significant gas discoveries from the Xu2 formation in blocks adjacent to Sunwing's Zitong block.

Analyst BMI noted that Ivanhoe's announcement “highlights the range of companies including Western majors, independent explorers, and oil field service companies that have moved into domestic Chinese unconventional gas exploration.”

Earlier this month, Baker Hughes Inc. said it had been awarded a contract by PetroChina to utilize its fracing technology to develop tight gas deposits at the Changqing field in north-central China.

Under the 1-year contract, Baker Hughes will supply 77 multistage openhole fracture completion systems for horizontal wells in the tight gas sands of the Changqing field, where PetroChina is expanding its horizontal well, multistage fracturing activities to increase gas production.

Contact Eric Watkins at hippalus@yahoo.com.

Related Articles

BHI: US rig count continues upward creep

07/10/2015 Although the overall US drilling rig count only edged up 1 unit to 863 rigs working during the week ended July 10, it represented the third consecu...

MOL completes Ithaca Norge acquisition

07/09/2015 MOL Group, Budapest, has completed its acquisition of Ithaca Petroleum Norge from Ithaca Energy Inc. for $60 million plus possible bonuses of up to...

Stone confirms oil pay with Cardona development well in deepwater gulf

07/08/2015 Stone Energy Corp., Lafayette, La., encountered 288 ft of net pay in two intervals with its Cardona No. 6 development well on Mississippi Canyon Bl...

WAFWA: Aerial survey finds lesser prairie chicken population grew

07/06/2015 A recent range-wide aerial survey found the lesser prairie chicken population rose 25% from 2014 to 2015, the Western Association of Fish & Wil...

Buru awarded onshore Canning licenses

07/06/2015 Buru Energy Ltd., Perth, and Mitsubish Corp. have been granted two production licenses for Ungani oil field in the onshore Canning basin of Western...

CERI: Energy, operational efficiencies possible in Canadian oil, gas

07/06/2015 Measures can be taken by operators in the expanding resource-intensive Canadian oil and gas sector to improve both energy efficiency and operationa...

Earth model assists Permian asset valuation

07/06/2015 Laredo Petroleum Inc.'s Permian-Garden City asset is an unconventional resource play with more than four potential stacked zones covering a 1,700 s...

China's Yanchi area, western Ordos basin derived from mixed source

07/06/2015 The Yanchi area lies in the west of China's Ordos basin and to the west of the giant Sulige gas field, site of recent breakthroughs in Lower Permia...

Newfoundland, Labrador prepare for deepwater exploration

07/06/2015 Canada-Newfoundland and Labrador Offshore Petroleum Board's (C-NLOPB) most recent call for bids for the Eastern Newfoundland Region is coming to a ...
White Papers

UAS Integration for Infrastructure: More than Just Flying

Oil and gas companies recognize the benefits that the use of drones or unmanned aerial systems (UAS) c...

Solutions to Financial Distress Resulting from a Weak Oil and Gas Price Environment

The oil and gas industry is in the midst of a prolonged worldwide downturn in commodity prices. While ...
Sponsored by

2015 Global Engineering Information Management Solutions Competitive Strategy Innovation and Leadership Award

The Frost & Sullivan Best Practices Awards recognise companies in a variety of regional and global...
Sponsored by

Three Tips to Improve Safety in the Oil Field

Working oil fields will always be tough work with inherent risks. There’s no getting around that. Ther...
Sponsored by

Pipeline Integrity: Best Practices to Prevent, Detect, and Mitigate Commodity Releases

Commodity releases can have catastrophic consequences, so ensuring pipeline integrity is crucial for p...
Sponsored by

AVEVA’s Digital Asset Approach - Defining a new era of collaboration in capital projects and asset operations

There is constant, intensive change in the capital projects and asset life cycle management. New chall...
Sponsored by

Transforming the Oil and Gas Industry with EPPM

With budgets in the billions, timelines spanning years, and life cycles extending over decades, oil an...
Sponsored by

Asset Decommissioning in Oil & Gas: Transforming Business

Asset intensive organizations like Oil and Gas have their own industry specific challenges when it com...
Sponsored by
Available Webcasts


The Resilient Oilfield in the Internet of Things World

When Tue, Sep 22, 2015

As we hear about the hype surrounding the Internet of Things, the oil and gas industry is questioning what is different than what is already being done. What is new?  Using sensors and connecting devices is nothing new to our mode of business and in many ways the industry exemplifies many principles of an industrial internet of things. How does the Internet of Things impact the oil and gas industry?

Prolific instrumentation and automation digitized the industry and has changed the approach to business models calling for a systems led approach.  Resilient Systems have the ability to adapt to changing circumstances while maintaining their central purpose.  A resilient system, such as Maximo, allows an asset intensive organization to leverage connected devices by merging real-time asset information with other critical asset information and using that information to create a more agile organization.  

Join this webcast, sponsored by IBM, to learn how about Internet of Things capabilities and resilient systems are impacting the landscape of the oil and gas industry.

register:WEBCAST



On Demand

Taking the Headache out of Fuel License and Exemption Certificates: How to Ensure Compliance

Tue, Aug 25, 2015

This webinar, brought to you by Avalara, will detail the challenges of tax document management, as well as recommend solutions for fuel suppliers. You will learn:

-    Why it’s critical to track business partner licenses and exemption documents
-    The four key business challenges of ensuring tax compliance through document management
-    Best practice business processes to minimize exposure to tax errors

register:WEBCAST


Driving Growth and Efficiency with Deep Insights into Operational Data

Wed, Aug 19, 2015

Capitalizing on today’s momentum in Oil & Gas requires operational excellence based on a clear view of what your business data is telling you. Which is why nearly half* of oil and gas companies have deployed SAP HANA or have it on their roadmap.

Join SAP and Red Hat to learn more about using data to drive process improvements and identify new opportunities with the SAP HANA platform running on Red Hat Enterprise Linux. This webinar will also show how your choice of infrastructure impacts the performance of core business applications and your ability to achieve data-driven insights quickly and reliably.

*48% use SAP, http://go.sap.com/solution/industry/oil-gas.html

register:WEBCAST


OGJ's Midyear Forecast 2015

Fri, Jul 10, 2015

This webcast is to be presented by OGJ Editor Bob Tippee and Senior Economic Editor Conglin Xu.  They will summarize the Midyear Forecast projections in key categories, note important changes from January’s forecasts, and examine reasons for the adjustments.

register:WEBCAST


Emerson Micro Motion Videos

Careers at TOTAL

Careers at TOTAL - Videos

More than 600 job openings are now online, watch videos and learn more!

 

Click Here to Watch

Other Oil & Gas Industry Jobs

Search More Job Listings >>
Stay Connected