BG Group reported a discovery on Block 64/11 offshore China after the Lingshui 22-1-1 exploration well encountered gas-bearing sands.

The well, the first drilled by BG Group in China, is in the deepwater Qiongdongnan Basin in the South China Sea, approximately 130 kilometres offshore and in a water depth of 1 338 metres. BG Group will now conduct further analysis of the well results to increase understanding of the hydrocarbon potential in the Block.

BG Group Chief Executive Frank Chapman said: “This is an encouraging result from our first well offshore China, where our licence area encompasses three Blocks spanning some 15 000 square kilometres adjacent to large and rapidly growing Chinese gas markets.”

BG Group plans to continue its exploration programme in 2011, with a second well to be completed early in the year and the acquisition of 1 500 square kilometres of 3D seismic data on Block 63/16.

Tags: BG Group