Sino Gas & Energy Reports Significant Flow from China CSG Well

Sino Gas & Energy on Monday announced a flow rate of 2.1 million standard cubic feet per day (MMscf/d) from an upper zone of the LXDG-04 exploration well in Linxing (East) PSC in China’s Shanxi province.

Sino Gas estimates LXDG-04 could produce over 3 MMscf/d at standard field operating pressures. 

LXDG-04 exploration well is the third well in the Linxing (East) exploration area to yield production test flow rates above commercial thresholds following positive flow tests achieved on LXDG-03 and LXDG-05, the company said. LXDG-02 is currently being tested.

Meanwhile the company also stated that revised commercial terms for the restart of the Sanjiaobei Central Gathering Station (CGS) had been substantially negotiated prior to the 18 November 2015 National Development and Reform Commission (NDRC) announcement on revised city gate prices.

“This agreement would have allowed the immediate re-start of production from the Sanjiaobei station. However, in light of the updated city-gate prices, negotiations are continuing to incorporate these changes. The restart date of the Sanjiaobei station is expected before the end of the year and an update will be given once negotiations are completed,” the company said.  

Also, Sino Gas has now received all regulatory approvals necessary to allow the finalisation of gas sales payments from our PSC partner at Sanjiaobei to the Joint Venture Company.

Sino Gas & Energy is an Australian energy company focused on developing Chinese unconventional gas assets. The company is the operator of the Linxing and Sanjiaobei PScs in the Ordos Basin, Shanxi province. SGE’s interest in the Linxing PSC with CUCBM is 64.75 percent and 49 percent for the Sanjiaobei PSC held with PCCBM.