Ivanhoe Energy subsidiary Sunwing Energy has discovered natural gas for the second time in less than a month at its Zitong exploration block in the Sichuan Province, China.

The Zitong-1 well, drilled in Xu-4 formation, had shown an initial flow rate of 750,000 ft3 per day on a three millimeter choke during testing.

The well will be shut to record the build-up of the reservoir pressure and the Xu-4 formation will be isolated to allow perforating and testing of the Xu-5 formation.

Ivanhoe Energy president and COO David Dyck said the company looks forward to production and cash flow in 2011 and further development activity in the area soon.

Sunwing Energy has earlier discovered natural gas at Yixin-2 well over this block on December 21, 2010.