Ivanhoe discovers more Sichuan gas in China

Ivanhoe Energy Inc. said China subsidiary, Sunwing Energy Ltd., discovered natural gas with its Yixin-2 well in southwest China on the Zitong block. Gas flowed at rates of up to 13 MMcfd, and averaged 9-10 MMcfd during an initial 24-hr test.

Dec. 29, 2010

By OGJ editors
HOUSTON, Dec. 29 -- Ivanhoe Energy Inc. said China subsidiary, Sunwing Energy Ltd., discovered natural gas with its Yixin-2 well in southwest China on the Zitong block. Gas flowed at rates of up to 13 MMcfd, and averaged 9-10 MMcfd during an initial 24-hr test.

Gas is flowed from the Xu-4 formation, a well established gas-producing formation. Ivanhoe said the rates recorded demonstrate the discovery's strong potential, and Sunwing plans to continue with further development of the Xu-4 formation and other structures in the Zitong block (OGJ Online, Nov. 2, 2010).

Sunwing's 659,840-acre holding on Zitong block is in the Sichuan Province. Sunwing operates the Zitong exploration block and holds a 90% contractor interest in a petroleum contract with PetroChina Co. Ltd. Japan’s Mitsubishi Gas Chemical Co. holds 10% contractor interest.

Technical teams from Sunwing and PetroChina are working to develop a strategy to evaluate the Yixin structure, as well as the potential for further discoveries elsewhere on the Zitong block, Ivanhoe said.