24/07/2012
[23 July 2012, Hong Kong] MIE Holdings Corporation (“MIE” or the “Company”, together with the subsidiaries, the “Group”; Stock Code: 1555), an independent upstream oil company engaged in the exploration, development and production of crude oil and natural gas in China, Kazakhstan and USA, is pleased to announce that its wholly owned subsidiary MI Energy Corporation has successfully drilled and completed its first horizontal well Y39P1 in Moliqing oil field in the Songliao Basin under a production sharing contract (“PSC”) with PetroChina.
Y39P1 horizontal well was drilled to a total measured depth of 3,600 meters, with a vertical depth of 3,092 meters and a horizontal section of 400 meters. The well was completed with six fracture stimulation stages, pumping a total of 3,420 cubic meters of fluid and 396 cubic meters of proppant into the formation.
After fracturing, the Y39P1 well flowed from June 11, 2012 to June 28 and then was put on rod pump. Peak production occurred during the seven days ended July 10, 2012, with an average rate of 239 barrels of oil per day. The initial seven-day peak production rates for the two nearby vertical wells averaged 55 barrels of oil per day.
The Company is also planning two to three Moliqing follow up horizontal wells to fully evaluate the potential of horizontal wells with multi-stage fracture stimulation for these low permeability, light oil reservoirs after the drilling of this first horizontal well met the design requirement. With the promising results on this well, the Company is even more optimistic for the horizontal well that is being drilled on the north part of the Daan PSC.
The Company’s ability to effectively apply horizontal drilling and completion technology should also prove useful as it expands into unconventional gas development starting with the recently acquired interest in Sino Gas & Energy with its Linxing and Sanjiaobei projects.
About MIE Holdings Corporation
MIE is an independent oil and gas company engaged in the exploration and production of crude oil and natural gas in China, Kazakhstan and USA. The Group operates the Daan, Moliqing and Miao 3 oilfields in the Songliao Basin under three separate production sharing contracts with PetroChina, the largest oil company in China and holds a 51% stake in a joint venture that operates Linxing and Sanjiaobei gas assets in the Ordos Basin under two separate production sharing contracts. The Group also holds an exploration contract and three production contracts that allow the Group to conduct exploration and production activities in the Mangistau province in the southwestern region of Kazakhstan. In addition, the Group pursues other development and production opportunities in China, and exploration, development and production opportunities internationally, both independently and in partnership with other major and independent oil companies.
MIE is listed on the main board of Hong Kong Stock Exchange with stock code 1555.
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Issued by Trinity Communications Group Limited for and on behalf of MIE Holdings Corporation. For further information, please contact:
Trinity Communications Group Limited
Mr. Terence Wong terence.wong@tri-hk.com
Mr. Henry Ho henry.ho@tri-hk.com