TerraWest Energy Moves Ahead With Liuhuanggou CBM Program

Petromin Resources Ltd has announced that TerraWest Energy Corp is moving forward with exploration activities in the field at its Liuhuanggou coalbed methane project in Xinjiang, China. The 2012 Field Program involves drilling, casing and completing production wells at two key selected locations.

Drilling at well LHG12-02 is expected to begin on 2 November 2012. The well is located in the vicinity of previously drilled well LHG10-02 which intersected  multiple  gas-bearing Jurassic Badaowan (J1B) coal seams and shale.  

Well  LHG12-02  is  located  such  that  a  multiple  pilot  production  configuration  can  be considered in the future. Completion of the well and any subsequent testing of target coal seams and formations will follow after evaluation of results.

Estimates suggest that the area contains gas in the range of (low) 70.00 billion cubic feet to (best) 147.43Bcf to (high) 514.07 Bcf.

TWE holds a 47% interest in and is the operator of the Liuhuanggou  CBM production sharing contract. China National Petroleum Corporation (CNPC) holds the remaining 53% of the PSC.