Mongolia: Nyalga basin exploratory well spudded

Sunwing Energy Ltd. has spudded the first exploratory well on Block XVI in the Kherulen subbasin of the Nyalga basin in Mongolia 100 km southeast of Ulaanbaatar.

The N16-1E-1A well is projected to 2,500 m as an oil test on a 32 sq km structure. Daqing Exploration Co., which has the drilling contract, has drilled to 437 m and cemented surface casing.

The 12,679 sq km block contains parts of several subbasins. Sunwing, a subsidiary of Ivanhoe Energy Inc., Calgary, plans to drill a second exploratory well on a separate structure and has an option to drill as many as three more wildcats.

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