Fortune Oil announced last week their intention to speed up the de-watering process in China....Why?
Here is a part of their latest announcement.
At the Liulin block in Shanxi Province we now have two pilot wells in dewatering phase prior to producing CBM (coal bed methane) and have drilled further data wells to exploit the estimated 40 billion cubic metres of gas resource.
Significant progress has been made at the Liulin CBM block in Shanxi Province, where Fortune Oil has a 60 per cent controlling interest in Fortune Liulin Gas Company (FLG), the foreign party in a production sharing contract with CUCBM. In January 2007 FLG partnered with a Shanxi government laboratory to assess the gas resource at Liulin, now estimated to be 40.5 billion cubic metres. In April 2007 FLG commenced the testing of two vertical pilot wells (FL-EP1 and FL-EP2), which are still in the dewatering phase.
New pumps will soon be installed to speed up the dewatering process and Fortune Oil is confident of producing gas from the pilot wells.
The Liulin block is regarded by CUCBM as one of China's top-ranked CBM blocks and is situated in the middle of the gas-rich Hedong plateau.
Fortune Oil's experience in exploring this block has enabled the Company to forge close links with the key CBM and gas distribution companies in Shanxi Province.
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