On Tuesday, October 14, 2008, Petromin (PTR) announced that TerraWest Energy Corp (TWE) had finalized its contractual arrangements with Xinjiang Geologic Engineering Co. Ltd. to commence drilling of two wide diameter wells (1500m and 800m) on TWE’s land in Liuhuanggou area of Xinjiang province, P.R. China. This will be a 45 day drilling program.
The 1500m well offsets a coal coring drillhole and gas desorption location completed in 2006. It is also designed to test for Jurassic-aged coal at 1100m. The 800m offsets another coal coring drillhole and gas desorption location and is also designed to be drilled and cased to the top of the J2x coal and then to run open hole permeability and production flow tests of the 40m plus J2x coal seams.
Four days after finalizing its contractual arrangements, TWE spudded the 800m well. The commencement of the drill program was celebrated with an opening ceremony. PTR’s on-site head engineer, Ryan Adams was given the ceremonial honour of pulling the switch to start the drilling and the well was officially spudded at 11:08am. The opening ceremony ended with fireworks and other traditional Chinese business ceremonies.
Petromin Resources Ltd. is pleased to announce that it has entered into a master technical services agreement with Enviro Energy International Holdings Limited, a public company listed on the Growth Enterprise Market of the Hong Kong Stock Exchange, which is principally focused on coal bed methane, enhanced oil recovery, coal mine methane mitigation, green house gas emissions reduction, clean development mechanism projects, and landfill gas projects. Pursuant to the Agreement, the Company will provide its services through the provision of its personnel, expertise, experience, contacts, technology and research services towards the development of Enviro Energy's oil and gas business. The Agreement has an initial two year term, subject to renewal by mutual consent.
Under the Agreement, and in consideration of providing Project Services, the Company will be paid its agreed fees and expenses; and in addition Enviro Energy will grant the Company an interest in the underlying project to which the work pertains, whether as a working or carried interest, or as a royalty interest, of up to ten percent of Enviro Energy's interest in such project, as will be negotiated on a project by project basis.
The Company also announces it entered into a master research services agreement dated effective June 15, 2007 with the Alberta Research Council Inc. ("ARC") pursuant to which the Company has access to the knowledge and senior personnel at ARC for the purpose of ARC researching and briefing the Company on all matters pertaining to the use and of carbon dioxide (CO2) for enhanced hydrocarbon recovery (including, for example, coal bed methane) and the geological storage of CO2. Having access to this knowledge base has allowed the Company to move forward and negotiate similar research agreements within the industry; the first of which is the Agreement with Enviro Energy.
The Company looks forward to working with Enviro Energy and enhancing its diversification plans in upstream hydrocarbon development and production projects, and enviro-energy projects; and to mutually profiting with Enviro Energy from such projects.
