Successfully realizes the breakthrough of shale gas exploration
Proactively captures huge business opportunity
HONG KONG, Dec. 11, 2013 /PRNewswire/ -- A leading global land drilling rig manufacturer – Honghua Group Ltd. (Stock Code: 196.HK) ("Honghua" or the "Group"), announced today that its wholly-owned subsidiary Honghua Oil & Gas Engineering and Technology Services (Sichuan) Co., Ltd ("Honghua Oil & Gas Services") has completed the first shale gas drilling services project in Yibin City, Sichuan Province. The contract of this drilling project is valued at RMB 17.3 million. The owner of the shale gas field is SCP Oilfield Services Co., Ltd ("SCP Oilfield Services").
Honghua Oil & Gas Services provided a wide range of support to SCP Oilfield Services, including drilling and oil-based drilling fluids services, together with cementation, well completion and other services. It also offered technical staff and self-developed equipment such as top drives for drilling. After 90 days of hard work, Honghua Oil & Gas Services has successfully overcome obstacles including possible incline, leakage on the upper shale gas layer of Malongxi, and hydration, peeling off and collapse problems of long displacement. Upon completion, the well has been drilled to a depth of 4,115 meters. This is about 155 meters deeper than the designed well depth of 3,960 meters. The horizontal shift in the bottom is 1,728 meters and the length of horizontal segment is 1,350 meters.
Mr. Liu Zhi, the Vice President of Honghua Group and the Chairman of Honghua Oil & Gas Services said, "It is very encouraging that Honghua has achieved breakthrough in the shale gas exploration. Honghua has always been treasuring business development opportunities in the oil and gas services area. The cooperation with SCP Oilfield Services will benefit the Group in further accumulating relevant experience in the shale gas area and raise continuously the technical expertise of the oil and gas service team. This in turn has established a solid foundation for the group’s business development in the shale gas business in future. Looking forward, Honghua will further expand in the unconventional oil and gas field, so as to capture fully the opportunity in the area and enhance returns to shareholders."
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