"As of the end of the quarter, a total of 86 production wells have been drilled of which 67 have been tied into the production facilities and only 55 are currently required to produce at nameplate capacity. The 2018 work program is well underway, with seven rigs focused on development drilling and one more in the process of being mobilised."
"Wells LXX48-30 and LXX46-30 were drilled in Linxing North and intersected 84m and 46m of gas pay, respectively. Fraccing and testing of these wells will commence once the remaining wells on the pad have been drilled. Horizontal well TB-6H was drilled to total depth during the quarter and encountered high quality reservoir in the Shanxi formation which will be the kick-off point for a ~1,000m lateral section. A further horizontal well (TB-7H) is scheduled to be drilled from the same pad targeting the same reservoir. Both horizontal wells will be tested once drilling is completed and then prepared for tie-in to the new Linxing North CGS."
"Pilot well SJB6-16, partially drilled in December 2017, resumed drilling in March and identified 29m of net gas pay. "
SGE EBITDA in Q1 2018 of US$8.5 million was up ~140% from Q4 2017 due to increased production and strong net margins.
As a result of improvements in well targeting and completion methodology, Linxing deviated well TB-26-8 recorded production rates of over 6 MMscf/d from a 6m thick single reservoir zone for over one month. This is the highest deviated well rate ever recorded from a deviated or horizontal well
SEH Price at posting:
17.0¢ Sentiment: Buy Disclosure: Held
