Burlington to develop gas field in China

Ray Tyson

Petroleum News Houston correspondent

The China subsidiary of Big Houston independent Burlington Resources has received approval from that country to develop the onshore Bajiaochang Gas Field in Sichuan Province, Burlington said Feb. 26.

Burlington said the development program, which includes a series of fields, would begin immediately with a large natural gas accumulation confirmed on a 1,700-square-mile block through the drilling of six appraisal wells and recompletions of four existing wells. The onshore Chuanzhong Block, located near the town of Shehong, features tight producing formations, “a type of geology Burlington has proven highly adept at exploiting throughout the U.S. and Canada by utilizing hydraulic fracturing and other stimulation techniques,” the company said. Burlington serves as the project’s operator and holds 100 percent of contractor’s working interest in a production sharing contract with China National Petroleum Corp. Burlington is also an interest holder in the Panyu Project, which began producing oil from the South China Sea during 2003.

“This is one of the strategic areas that offers Burlington growth potential for the second half of this decade,” Bobby Shackouls, Burlington’s chief executive officer, said of China’s onshore potential.