The Group signed an oil cooperation contract and a production sharing contract (PSC) with CNPC on 15th April 2008, with cooperation term of 30 years and production term of 20 years. The block is located in Xinjiang Luntai, China with an area of 74.77 square kilometers;
The Group is an operator of the gas field with a 49% working interest in it. Its Overall Development Plan (ODP) was successfully approved in May 2011. The operation commenced in April 2011, reflecting that the Group had a professional technical team and efficient operational capability;
Based on the reserves revenue report issued by the third-party consulting company on June 30, 2019, the total 2P reserves of the field are 3.8billion cubic meters of natural gas (134Bcf) and 1.57MMBO of condensate;
There are three production wells in the gas field. The current daily output stabilizes at 1.6 million cubic meters of natural gas, the annual output is expected to reach 550 million cubic meters. The acidizing operation of Dina 1-2 will be carried out, the total daily output of the gas field will reach 1.55 million cubic meters after successful stimulation;
It is contributing steady cash inflow to the Group. With the price of natural gas in China is expected to increase, it will generate a more impressive economic return to the Group;
Since the commencement of their production, the gas fields have maintained safe and stable operation. Moreover, no major Health, Security, and Environment (HSE) incident have occurred;
It is a successful case of CNPC's cooperation with an outside party. This project helps the Group to forge a good working relationship with CNPC, which creates a long-term win-win situation for both sides.
