As per the work program for the flow test, Sino Gas has now ‘shut in’ the well for a further period to

determine whether it is necessary to hydraulically fracture stimulate the well.

According to the company, this activity is the first step in a multi well/multi fracture program designed to generate the data required to confirm gas reserves as a critical step towards preparation of a field development plan for Tuban.

TB-07 gas discovery well is the first well being tested, which was drilled during fourth quarter of 2009. The test was conducted on a zone which exhibited log and core testing results.

The company expects to implement a work program during 2010 to generate the data to proceed to confirm the gas reserves in Tuban as a critical step towards preparation of a full field development for the Tuban project.

Stephen Lyons, managing director of Sino Gas, said: “Sino Gas’s previous best well flowed at 400,000 scf/day with tubing head pressure of 200 psi following fracture stimulation. To have achieved an initial flow rate, before fracture stimulation, in excess of four times this rate is an excellent start to our program.

“Sino Gas’s target during 2010 is to upgrade our resources to reserves and move towards development, and this result should contribute strongly to that objective.”