China: Logs indicate gas at Zijinshan CBM well

By OGJ editors
– Mud logs identified 8 m of gas-bearing interval at 1,489-1,515 m in the ZJS-03 exploratory well at Zijinshan in the Ordos basin in Shanxi Province, China, said Camac Energy Inc., Houston.

A third party is evaluating the logs to allow full assessment of the size of the discovery. TD is 1,598 m.

ZJS-03 is the first in a planned three-well program for 2011 and the first well in the larger, upthrown part of the 175,000-acre Zijinshan asset.

Camac will use data from well to refine the location of the ZJS-05 well to further evaluate the resource potential of ZJS 3 structure. ZJS-05 is expected to be drilled following the completion of the next planned well, ZJS-04, which will test the ZJS 2 structure, on which a gas discovery was made in 2010.

Camac owns 100% of the foreign contract interest in the Zijinshan production sharing contract in partnership with PetroChina CBM Co.

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