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.
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.
GlobalData Strategic Intelligence
US Tariffs are shifting - will you react or anticipate?
Don’t let policy changes catch you off guard. Stay proactive with real-time data and expert analysis.
By GlobalData
