ASX-listed Sino Gas & Energy Holdings has achieved a gas flow rate of about five million standard cubic feet per day on the first horizontal well of the Linxing production sharing contract.

The first horizontal well, located in China’s Shanxi province, has been fracked in a five metre level zone in the south-western discovered area of Linxing (West).

Following a nine stage fracture stimulation treatment, flow testing was conducted over 80 hours in two stages, achieving a gas flow rate of 4.93 MMscf/day at a relatively stable flowing tubing head pressure of 2,008 psi.

Pressure build-up testing was conducted in between the two testing phases for eight days, with initial results indicating an estimated formation pressure of 3,116 psi.

The testing of the first horizontal well result follows optimisation of the fracture stimulation treatment on three vertical wells on Linxing (West), and it is planned to be tied into a pilot pipeline production program scheduled for later in the year.

Sino Gas chairman Gavin Harper said the company was pleased with the tremendous result from the first horizontal well.

“The testing results, which came in at the high end of our expectations, provides a confirmation that the use of horizontal well technology can potentially have a positive effect on our project economics, as we further optimise our field development plans,” he said.

Mr Harper said the level of activity in the field continued to be very high, with eight rigs and four testing teams currently deployed, with construction concurrently proceeding on a pilot program pipeline and facilities.