China Junggar CBM exploratory drilling progresses

TerraWest Energy Corp., Vancouver, BC, has provided results of its 2012 exploratory drilling program on the Liuhuanggou coalbed methane production sharing contract area covering 255 sq miles adjacent to the city of Urumqi, capital of China’s Xinjiang Uygur Autonomous Region, in the Junggar basin.

TWE has a 47% interest in and is operator of the Liuhuanggou PSC. Petromin Resources Ltd., Vancouver, BC, has a 47% interest in TWE. China National Petroleum Corp. holds 53% of the PSC. The PSC is now administered by PetroChina Coalbed Methane Co. Ltd., an indirect subsidiary of CNPC.

Petromin said TWE drilled the LHG10-02 well, spudded Nov. 11 near the previously drilled LHG10-02 well, reached the planned total depth of 750 m and was cased.  Completion and fracture stimulation of prospective formations is planned for spring 2013.

The target formation is the Jurassic Badaowan J1B, which contains multiple coal seams and prospective surrounding rocks. The well intersected target coals as planned, and initial indications from geophysical logs show that key zones reflect gas potential as expected and that some surrounding rocks above coal seams show excellent further gas potential.

The LHG12-02 well is located such that a multiple pilot production configuration can be considered in the future. In particular it is planned that the LHG12-02 and LHG10-02 wells will communicate once completed.

Severe winter weather forced cessation of field work on Dec. 8. Drilling at LHG12-01, located to intersect and test the thick coal seams in the Jurassic Xishanyao J2X formation on the west side of Liuhuanggou, was to follow LHG12-02 and due to weather will spud in spring 2013.

Petromin said it is believed to be the only Canadian junior public company listed on the TSX Venture Tier One Board to have an interest in China’s massive coalbed methane/shale gas PSCs.

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