Ivanhoe Energy, through its China-focused subsidiary Sunwing Energy, has made a significant gas discovery at the Yixin-2 well in southwest China.

Gas from the well flowed at rates of up to 13 million cubic feet per day, and averaged 9 to 10 million cubic feet per day during the initial 24-hour test period.

Gas is flowing from the Xu-4 Formation, a well established gas-producing formation in the region.

Following initial flow and pressure tests, the well has now been shut-in for pressure build-up.

Sunwing is the operator of the Zitong exploration block in the Sichuan Province and holds a 90% contractor interest in a petroleum contract with PetroChina, while Mitsubishi Gas Chemical Company of Japan holds the remaining 10% contractor interest.

Ivanhoe Energy is an international heavy oil development and production company.