Ivanhoe Energy Discovers Gas in Zitong Block

Ivanhoe Energy subsidiary Sunwing Energy has discovered a large amount of gas at Sunwing’s Yixin-2 well on the Zitong block in Sichuan, China.

Gas from the well flowed at rates of up to 13 million cubic feet per day and averaged nine million to ten million cubic feet per day during the initial 24-hour test period.

Ivanhoe encountered gas in the Xu-4 Formation, a well established gas-producing formation in the region.

Ivanhoe Energy’s president and COO David Dyck said the rates recorded from the Xu-4 Formation demonstrate the discovery’s strong potential and are incentive for Sunwing to continue with further development of the Xu-4 formation and other structures in the Zitong block.

The 26.7 billion square metres Zitong block is in the Sichuan province, the oldest and one of the most productive gas-producing regions in China.

Sunwing is the operator of the Zitong exploration block with a 90% contractor interest in a petroleum contract with PetroChina.