Sino gas

* Not Sure if anyone has read this report *

Construction of the Linxing Central Gathering Station (CGS) is now complete and commissioning of first gas is expected to kick-start in July, reported Sino Gas and Energy, a Beijing-headquartered, Australian energy firm.
This includes gathering lines for the first batch of seven wells to be tied into the Linxing CGS, including TB-1H the first horizontal well drilled in 2013 and tested in 2014 at a rate of 4.93 MMscf/d.
Pilot gas sales from the Linxing CGS are anticipated to commence following completion of commissioning activities. Commissioning operations consist of pressure testing all connections, and testing of each individual major component such as generators, separators and compressors.
Work is ongoing on the gathering lines, which will connect the next batch of wells to be tied, including TB-26, TB-23 and surrounding wells. All expected to come on-stream in Q32015.
Moreover, two exploration wells, LXDG-4 and LXDG-5 in Linxing East of the Linxing PSC covering 1301sq km were both drilled and discovered 32m and 10m of net gas pay, respectively.
Sino Gas is currently testing LXDG-3 well and nominal flow rates were recorded from the first zone tested with additional zones yet to be tested, the firm told investors.
Drilling of the third horizontal well in Linxing West, TB-3H, drilled near the TB-26 well, has concluded. A 1080m lateral section was drilled and results are currently being evaluated, followed by testing in the later part of this year.  
Approximately two thirds of the planned 600km seismic program has been acquired on the southwest portion of Linxing East and central portion of Sanjiaobei.
In 2015, the drilling program to date has achieved a 10% reduction in average costs for wells compared to 2014. This is due to, Sino Gas said, a combination of improved drilling and service costs as a result of subdued activity levels in China driven by lower oil prices.
TB-3H was drilled approximately 30% faster than the first horizontal well, TB-1H. While a final cost of the well depends on the fracking and completion program, it is currently anticipated TB-3H will cost approximately 20% less than TB-1H.
In April, the second compressor at the Sanjiaobei CGS increased capacity from 2-8 MMcf/d.
Image: Linxing CGS construction / Sino Gas
-