(MENAFN - ProactiveInvestors - Australia) Sino Gas & Energy (ASX:SEH) is set to accelerate its fully funded 2013 work program, with plans to deploy six additional drill rigs and preparing a Chinese Reserve Report for its onshore Ordos Basin production sharing contracts in China.
It already has four rigs on the field and has plans to double it to ten with six rigs being sourced after the Chinese New Year.
The focus of the current year's work program including preparing a Chinese Reserve Report as a first step in developing the PSC to produce gas for the domestic market.
Sino Gas has already completed the third well of the six well program at its Sanjiaobei PSC with the remaining three wells to be spudded from March.
Similarly, it has also completed the last four of the eight well shallow program at the Linxing East with dewatering and fraccing started on the first four wells.
Initial mud and electronic wire line log results confirmed expectations of coal seams in the area at an average of 30.1 metres of total pay per well.
Its work program for this year also includes an independent reserves and resources assessment by RISC likely in March with data from 270 kilometres of seismic from Linxing East and Sanjiaobei and drilling results from the twelve wells drilled in 2012 to be included.
The reserve report on Linxing East and completion of the pilot production design and construction is likely in the third quarter, while the reserve report for Sanjiaobei is likely to be finalised in the fourth quarter.
The PSCs covering about 3000 square kilometres are located in the highly prospective Ordos Basin, which is the second largest onshore oil and gas producing basin in China.