DIGG, check this, we even have a China connection here!!
NEW YORK, Jun 3, 1999 /PRNewswire via COMTEX/ -- Digital Gas (OTC Bulletin Board: DIGG) today announced that it has entered into an agreement
with Taichang Company, Shengli Oilfield for both parties to form an exclusive partnership for the exploitation of China's two largest oilfields, the Shengli
and the Daqing, as well as two other major fields, the Liaohe and Talimu.
Taichang has invited senior management and technical experts of Digital Gas to Qingdao City and Dongying City in Shandong Province for the purpose of
conducting an in depth review of information provided by Taichang regarding the Shengli Oilfield. After completing reservoir studies and a feasibility report,
Digital will choose the target sites for the initial test application of its underbalanced drilling and other production optimization strategies and technologies
designed to address the problem of pressure depleted wells that are underproducing or closed-in. With the successful completion of the initial tests,
Digital Gas will be granted an exclusive 20-year technology service contract, which will include a percentage carried interest based on the total
production of each field that Digital Gas enhances. This percentage will drop to a baseline of 10% only after Digital Gas is earning at a rate of $200
million in annual net income.
Taichang Company will ensure that an audit system is in place to document the original production and the subsequent production enhancements by
Digital. The agreement also provides for payment guarantees.
Representatives of Digital Gas are presently in Qingdao City interviewing prospective candidates for senior management, middle management and
engineering positions for the soon to be registered Digital Gas Company, Qingdao City.
Located in the Yellow River Delta area on the Bohai Sea in the northern part of China's Shandong Province, the Shengli Oilfield overlaps with 28 counties
and districts under the jurisdiction of eight cities including Dongying, Binzhou and Dezhou. Its main parts are scattered on both sides of the Yellow River
estuary within the jurisdiction of Dongying. The second largest oilfield in China, Shengli has its headquarters, formally known as the Shengli Petroleum
Administration, in Dongying.
The discovery of the oilfield was based on the earlier oil surveys conducted in China's northern central region. The first successful drilling of industrial oil
was made on April 16, 1961 with the well coded Hua-8, which led to the discovery of the first oilfield in the basin of Bohai Bay knownas Dongxin Oilfield.
On September 23, 1962 the high-yield Ying-2 well was drilled on the Dongying Formation. On January 25, 1964 the Central Committee authorized
large-scale oil surveys and development in this area.
Shengli has five depressions with a total area of 65,000 km2. Current development is mainly focused in the Jiyang Depression, with major production
fields concentrated within an area of 10,000 km2 in the eastern part. Jiyang Depression is an oil/gas rich region with complicated geological features,
such as the large number of faults, great variety of rock formation and reservoir types, and many differences in the physical features of reservoirs and
qualities of crude oil. To date, 17 types of reservoirs have been found, such as sandstone, conglomeration, limestone, igneous rock, metamorphic rock
and others. In addition, there are 18 types of pools such as structural, fault, hidden and others. The enrichment is about 2 million tons per square km.
Over the past three decades more than 60 different oil/gas fields have been found and over 10,000 production wells have been drilled.
The largest oilfield in China is called Daqing Petroleum Administration, seated in China's northeastern province of Helongjiang (part of Manchuria). The
other major oilfields are Liaohe, also in the northeast, and Talimu, which is in the northwest. All oilfields in China were discovered after1949.
Digital Gas, which is headquartered in Dallas, Texas, is currently holding discussions with several Wall Street firms to provide Investment Advisory
services for its telecommunications, software, oil & gas and Internet-basedbusinesses.
For further information, contact Robert Lynn, President at 214-691-3640 or at info@digitalgas.com.
SOURCE Digital Gas
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CONTACT: Leo Murray of PR Associates, 212-856-4496, for Digital |
