Earlier, the company secured approval from the China’s National Development and Reform Commission for the overall development plan (ODP) for the phased development of the Yongping Oilfield in Fuyu 1 Block.
The ODP involves drilling of up to 1,008 wells over a five year period and the wells will be drilled to a depth of around 656ft to 984ft due to the shallow reservoir.
RH Petrogas plans to drill and complete up to 15 wells before the end of 2014, following which the wells will be suspended in readiness to move into production in 2015 when the upcoming winter season ends.
RH Petrogas CEO Francis Chang said: "I am very proud of our China team’s successful effort to begin drilling the first development well after obtaining ODP approval just one month earlier.
"The pre-development preparation since early 2013 has made this possible. These wells will start contributing to the Group’s production in 2015. The crude sales contract that was signed with CNPC provides a secure market for the oil produced."
The company will continue to process and interpret a new 3D seismic data for future exploration and appraisal programs in the Fuyu 1 Block in order to further assess its resource potential.
Located in Songliao Basin, Jilin Province, China, Fuyu 1 Block is operated by RH Petrogas subsidiary Kingworld Resources (KRL).
