China

By OGJ editors
HOUSTON, Nov. 15
– Terrawest Energy Corp., Vancouver, BC, began tests at the LHG08-01 well on a 655 sq km coalbed methane production sharing contract area in western Xinjiang Autonomous Region in the southern Junggar basin of China.

Terrawest drilled the well to 784 m and cased to the top of the thickest coal seam of the Jurassic Xishanyao J2X formation at 750 m. The coal seam in the open hole was tested in 2008 and 2009, producing water and CBM. The 2010 work involves a recompletion and workover of the well and perforation of the upper J2X coal seams that have not yet been tested.

The company also plans to test the LHG 08-03 well and new pilot wells drilled in October. The 2010 program calls for the drilling of as many as 10 pilot production wells sequentially into 2011. The wells are planned to produce CBM as well as gas from shale.

The program is the first CBM pilot production under a PSC in western China. Terrawest has the right to explore for, develop, produce, and sell CBM or liquid hydrocarbons extracted from CBM in certain named geological formations of Jurassic age to a depth of 1,500 m.

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