Project Profile
Value: Undisclosed
Location: Jilin province of northern PRC, China
Area: Approximately 254.9 sq km
Start-up Year: -
Covering a total area of approximately 254.9 sq km, the Fuyu 1 Block is located southeast of the Fuyu oilfield in the Jilin province of northern PRC. This area forms part of the Songliao basin, a large intracratonic rift basin which is one of the largest petroleum producing regions in the PRC, and in which major oilfield such as XinMin is situated. The Fuyu 1 Block was explored by CNPC in 1984. After the discovery of oil, the Fuyu 1 Block was not developed due to the heavy oil reservoir\'s low permeability, multiple thin reservoir sand layers, low oil saturation and the oilfield being compartmentalised by shale barriers and faults. However, with advancements in technology, high oil prices, the relatively low cost of developing the shallow oil reservoir and the low cost of oil production in the PRC, the development and production of oil at the Fuyu 1 Block could potentially become more commercially viable, as compared to about 20 years ago.
Based on the technical report dated April 2009 prepared by Gaffney, Cline & Associates (GCA), an independent international energy technical advisor, the Stock Tank Oil Initially In-Place (STOIIP) calculations of Fuyu 1 Block are a Low of 11.42 million tonnes (or 75.63 million barrels), a Best of 41.12 million tonnes (or 272.19 million barrels) and a High of 97.5 million tonnes (or 642.50 million barrels). GCA assumes a range of estimated recovery factor from 16.7% to 30.5% by applying Huff \'n\' Puff and steam flooding oil production methods. The resulting Contingent Resources of the net entitlements attributable to KRL are 1C of 0.906 million tonnes, 2C of 5.144 million tonnes, and 3C of 14.435 million tonnes.
On 12 November 2007, Kingworld Resources Limited (KRL) entered into a petroleum production sharing contract (PSC) with China National Petroleum Corporation (CNPC) relating to the joint development and production of hydrocarbon resources in Fuyu 1 Block. KRL has the right to operate the assets and receive production and/or revenue from the sale of oil and gas in accordance with the PSC.
Operators:
RH Petrogas Limited (holding company of Kingworld Resources Limited (KRL)): Operator with 49% interest
CNPC: 51% interest
Contractors:
RPS Energy Consultants Limited (RPS): RH Petrogas Ltd.\'s unit Kingworld Resources Limited (KRL) appointed independent reserve evaluator to conduct an annual assessment on Fuyu 1 Block\'s oil and gas reserves and resources as of 01/01/2016 and the report was completed in April 2016. (18/05/2016)