Enviro Energy
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TerraWest's Liuhuanggou gas project more significant than expected
Enviro Energy today announced that the thickness of prospective shale gas zones on its subsidiary TerraWest Energy’s Liuhuanggou Project is far greater than initially indicated by drilling. The Liuhuanggou Project is located in the southern Junggar Basin of Xinjiang, China.
The next steps of the Liuhuanggou Project will be to further sample, test and analyze the shale and the other formation intervals, delineate the scale of the resource and determine critical reservoir characteristics.
Samples of shale taken from 2008 drilling program are currently being analyzed for various qualities including total organic carbon content. Additional test drillingat selected locations is expected to begin in the third quarter of 2009.
As previously disclosed, the Liuhuanggou Project has a significant infrastructure advantage in China. The Junggar Basin in Xinjiang is an active hydrocarbon region with existing petroleum and natural gas production and extensive gas infrastructure.
At present natural gas pipelines owned and operated by PetroChina Company Limited transport gas from producing fields to Urumqi city, a growing local gas market. Another pipeline connects Urumqi to the west-east pipeline which can transport gas across China to Shanghai and other population centres. A second west-east pipeline to carry imported and eventually, central Asia natural gas across China to Guangdong, is under construction and crosses the Liuhuanggou.
