Ivanhoe Energy has started drilling the Zitong-1 well in Sichuan Province, China, for tight gas.
The well is being spudded in a 659,840 acre gas exploration block operated by Sunwing.
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Ivanhoe said it plans to drill Zitong-1 up to a depth of 4,500m, targeting the 70km² Guan structure, which is located in the centre of Sunwing’s block for tight gas in fractured formations.
Each target in the Guan structure is estimated to have potential of 0.3-0.5 trillion cubic feet of natural gas.
The well, which is expected to take up to six months to drill and test, will cost between $14.5m and $17.5m.
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By GlobalData
