Production Plans For Qiqihar Oilfields

10/05/2010

Our Qiqihar management team, General Manager Cao Quan, Operation Manager Sun Yong Guang, and Account Manager Zhou Guo, made their first-time visit to our head office and Hong Kong during the Chinese New Year holidays. We met for two days to discuss the onward development and production plans for our oilfields, particularly the Fu-718 block. A lot of considerations were given to the applications of horizontal wells, which if drilled and completed the right way, could be a feasible way to increase our oil production several fold.   

PetroAsian Energy announced in December 2009 the possible acquisition of a 51% interest of a PRC oil technology company, which specialises in the development of enzyme-enhanced oil viscosity reducers. This technology allows higher quantities of liquids to be extracted more easily from producing wells. This possible acquisition is in line with the company’s strategy in regards to further investment in energy related business, which potentially will diversify our revenue and profit base. The technology might also be put into good use in our Qiqihar oilfields. In sight of this, we invited some senior technicians in related fields and held a two-day technical meeting in Beijing. We examined the history, geology and potential of our oilfields, and the Qiqihar operating team shared their experiences and challenges they met and investigated the possible ways to apply this enzyme technology. After two days of productive discussion, a final consensus was reached to conduct trial runs on some of our selected wells.