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HONG KONG, Oct 10, 2011 - (ACN Newswire) - Enviro Energy International Holdings Limited ("EE" or the "Company"; HKSE: 1102) is pleased to announce that TerraWest Energy Corp. ("TWE"), a non wholly-owned subsidiary of the Company, has achieved a significant milestone in its development with the upgrade of estimates for the total Undiscovered Original Gas-in-Place ("OGIP") in the Liuhuanggou Production Sharing Contract ("PSC") area situated in Xinjiang, China. The upgrade is the result of an independent engineering report ("NSAI Report") prepared by Netherland, Sewell & Associates, Inc. ("NSAI"). The Liuhuanggou PSC area covers approximately 653 square kilometers (255 square miles; 163,200 acres) and is located adjacent to Urumqi, the capital city of Xinjiang.
These results are further to the Company's announcement on Discovered CBM Resources and CBM Contingent Resources issued on 21 June 2010 as NSAI has subsequently completed an assessment of all natural gas resources within the Liuhuanggou PSC area additional to Discovered CBM Resources reported in the previously evaluated area ("TWE's discovered CBM area").
The NSAI Report covers the Xishanyao (J2X) and Badaowan (J1B) target coal seams outside TWE's discovered CBM area as well as prospective shale and tight gas zones in these formations within the Liuhuanggou PSC on a gross (100%) basis and concludes with OGIP estimates for the Liuhuanggou PSC as follows:
- Total Best Estimate OGIP (J1B) Shale Gas of 10.503 trillion cubic feet ("Tcf");
- Total OGIP (J1B) Shale Gas: low estimate 6.658 Tcf and high estimate of 16.961 Tcf;
- Grand total Best Estimate OGIP all formations of 11.825 Tcf of natural gas; and
- Grand total OGIP all formations: low estimate of 7.179 Tcf; and high estimate of 19.185 Tcf.
The major portion of the estimated values is contained in shale underlying a significant area of the PSC which underscores the great potential and significant value of the area as an exploration and development target.
The results of the current resource evaluation provide a significant increase in the Company's independently evaluated resource potential at Liuhuanggou and are a major milestone and a significant step forward in unlocking substantial value as the Company moves forward to commercialise its natural gas position. Previously the Company had indications that CBM resources as defined in the PSC greatly exceed the potential resources in the coal seams alone. Such indications are now proven to be true and the Jurassic formations within the Liuhuanggou PSC area are seen to be potentially prolific, based on the prospective resource estimates.
Mr. Chan Wing Him Kenny, the Chairman and Chief Executive Officer of the Company, said "With demand and prices for natural gas increasing in China and local markets expanding and large-scale transnational infrastructure already in place at Liuhuanggou, the extended scope of the project now indicates that the two target formations identified by TWE have vast potential. Prospective gas reserves within multiple zones provide further support to move the entire project closer towards commercialisation."
The NSAI Report entitled: "Estimate of Gross (100 Percent) Prospective Resources for Coalbed Methane, Shale Gas and Tight Gas Prospects located in the Liuhuanggou Block Xinjiang Province, China as of December 31, 2010" will be made available on the EE website.
About Netherland, Sewell & Associates, Inc.
NSAI provides integrated consulting services encompassing geophysics, geology, petrophysics, engineering, reservoir modeling and economics. NSAI has performed geophysical, geologic and engineering studies of reservoirs around the globe - from the North Sea to South America, from the North Slope to South Florida, and from West Africa to the Middle East and Indonesia - for leading major integrated petroleum companies, both small and large independent oil and gas companies, and various financial institutions and government agencies. For more information about NSAI, please visit www.netherlandsewell.com.
Contact:
Strategic Financials Relations Limited:
Ms. Iris Lee / Ms. Keris Leung / Ms. Cornia Chui
Tel: +852-2864-4829 / 2864-4863 / 2864-4853
Fax: +852-2527-1196
Email: iris.lee@sprg.com.hk / keris.leung@sprg.com.hk / cornia.chui@sprg.com.hk
Topic: Research / Industry Report
Source: Enviro Energy
Sectors: Gas & Oil, Daily Finance, Energy, Alternatives
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From the Asia Corporate News Network
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