Sino Gas and Energy operate in the Sanjiaobei and Linxing blocks of the Ordos basin. They had an independent assessment of the minimum flow rate per well in production that would constitute economic viability and that was given as 125 Mscf per day. Some of their wells on test have achieved far more than this eg just one zone of TB07 flowed 1864 Mscf/day with a 600 psi tubing head pressure. They estimate 2900 Mscf/day at a tubing head pressure of 200psi.TB09 tested at 883 Mscfd and TB06 at 1000 Mscfd. I shouldn't imagine our min threshold per well for economic viability would differ much as we're operating in the same environment. Typically wells have up to 5 pay zones in Sanjiaobei and Linxing West. It is very encouraging that the threshold is so low and that such good flow rates are being achieved close to our block. Opinion only, DYOR.
LRL Price at posting:
27.5¢ Sentiment: ST Buy Disclosure: Held
