The Nan 105 well recorded 330 barrels of 35 degree API oil per day (bopd), with no water, and comes on the back on a successful - yet intensive - pilot project that is currently producing approximately 500bopd.
This achievement bodes well for the Heads of Agreement signed between Sunwing's parent company Ivanhoe and China's China International Trust & Investment Corp (CITIC) late last year which saw the two companies agree to jointly develop Dagang. The deal, which will make Sunwing the operator of the Ivanhoe (60%) and CITIC (40%) JV, will be finalised soon.
The development program for the entire field calls for the drilling of a further 115 new wells and the re-completion of 27 existing wells over three years and in three phases. The project between Ivanhoe and CITIC is being developed under a 30-year PSC with China's CNPC (China National Petroleum Corp) and covers an area of around 22,400 gross acres within Dagang.
