Firm to frac three wells in Chinese field

July 6, 2006
China North East Petroleum Holdings Ltd. (CNEH) soon will begin fracing three wells in Qian 112 oil field southeast of Qian'an in Jilin Province.

By OGJ editors
HOUSTON, July 6 -- China North East Petroleum Holdings Ltd. (CNEH) soon will begin fracing three wells in Qian 112 oil field southeast of Qian'an in Jilin Province.

The Qian 5-2, 3-5, and 12-16 wells, drilled by Rising Sun Oil Exploration & Production Ltd., follow the recently completed Qian 12-14 well, which is producing 38 b/d of oil, double the expected initial output, CNEH said.

Qian 5-2, an exploration well drilled to 5,905 ft, encountered 59 ft of net pay and confirmed an additional pay stringer in an upper reservoir that was previously discovered. Logging data from Qian 3-5 and 12-16 are not yet available.

CNEH said Qian 112 field has proved reserves of 1.2 million bbl in the Cretaceous Fuyu and Gaotaizi formations. It said the Gaotaizi is the main target in the production wells.

The company currently operates 21 producers in northern China, with estimated output of 420 b/d of oil. It has a firm commitment with PetroChina's Jilin Refinery to sell its crude oil.

CNEH Pres. Hongjun Wang said the company's 2006 drilling program involves completion of 40 wells by the end of the third quarter. This will at least double production and revenue, he said.

By yearend 2007, the company plans to complete a further 81 wells, bringing its total producing wells to 102.