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.