Sino Gas Flow Test ProgramTB-07 (took only 7 days to determine...

Sino Gas Flow Test Program

TB-07 (took only 7 days to determine commercial Flow Rate result from 1st payzone)
24 May 2009: (Rig & Testing equipment mobilized to site)
31 May 2009: 1st potential pay zone tested (6 meter thickness). Flow Test result: 1,836,000 scf/day (or 52,000m3/day) achieved without Frac. Stimulation

TB-05 (took 2 weeks for Flow Test result after Frac. Stimulation)
28 June 2009: successfully Frac Stimulated, & clean up on-going
14 July 2009: Commercial F.T. result: 500,000 scf/day

TB-04 (took ~ 7 days to get Initital FT without Frac St. & one month with Frac Stimulation)
13 Oct 2010: Flow Test commenced (without Frac Stimulation)
20 Oct 2010: Initial Flow Test rate achieved 100,000 scf/day
22 Oct 2010: Fract. Stimulation to take place to get better rate
17 Nov 2010: FT Result: 224,000 scf/day

SJB:03 (Took one week to get Flow Test Result, without Frac Stimulation)
08 Dec 2010: Mobilizing of Rig to Site to conduct Flow Test
22 Dec 2010: Operation prevented due to some issue
29 Dec 2010: Flow Test Result (issue sort out), achieved stable rate of 280,000 scf/day

TB-09 (took 6 days to get initital flow rate & 14 days for complete Flow test, without Frac Stimulation, only single pay zone)
19 may 2011 : Rig Mobilize for Flow Test complete
25 May 2011 : Initial Flow Rate of 850,000 scf/day from single pay zone
02 Jun 2011 : Flow Test result: 1,150,000 scf/day stable rate from single pay zone without Frac Stimulation.

Frac Stimulation could increase productivity by 4 times.

From Sino Gas Flow Test Program, It can be concluded that Core Sample/Logging Analysis take upto 14 days & flow Test (without Frac Stimulation) take 7 1- days.


TB-07 achieved rate of 1,836,000scf/day from 1st pay zone (6 meter thickness), where as from LRL last presentation, it looks like 1st potential pay zone has thickness of around 15 meters.(1550m - 1565m), AGM Presentation Slides # 15.

Conclusion (In My Opinion):

1. Core Sample/Logging Analysis result from Lab is expected this week, if Company is willing to update market. Because Lab Analysis report can determine which zone to be tested first to get good figure

2. Flow Test result is expected around 20 Dec (7 - 10 days program). As Last RNS confirmed installation of Testing Rig over well Head.

3. Based on Sino Gas result, I am expecting over 1 million scf/day rate from 1st pay zone that has thickness of around 15m net (TB-07 flowed at 1.83m MMscf/day without Frac Stimulation with only 6 meter thickess)

reason I am comparing with Sino Gas discovery is that in recent Video Interview, LRL Director Paul mentioned that ZJS 5,6,7 has similar rock formation & geology to Sino Gas Gas Discovery.

It's all my opinion! Any mistake, Plz correct me!