The contract will cover the drilling and production testing of two coalbed methane wells at the Aolong Project in the Hegang area of China’s Daqing Basin.
Work under the contract includes drilling, coring, drill stem testing and fracturing operation of two wells to depths of between 800m and 1,000m.
Upon completion of drilling, the wells will be production tested for a period of six months.
Payment for the drilling services is the responsibility of Blue Sky Power, in consideration for which Triple Energy will issue nearly 600 million shares priced at $0.006 each to Blue Sky Power at a notional value of $2.75m. Following the transaction, BSP will own a 58% in Triple Energy.
Triple Energy owns an 80% stake in coal mine gas project in Hielongjiang province in China.
It also focuses on investing in the oil and gas projects in conventional and unconventional sectors, including coal seam gas, and shale oil and gas.
