Development Prospects of Shaanxi Yanchang Petroleum Group Oil and Gas Exploration Company

(1) Based on the exploration in the province, oil exploration is advanced in an orderly manner. First, exploration in the province is further deepened. The exploration efforts in various exploration areas have been intensified, better oil reservoir indications have been discovered, the oil-bearing area has been increased, and the understanding of the distribution patterns of reservoirs in the exploration areas has been deepened. At the same time, the on-site reconnaissance work for next year’s exploratory wells has been completed.

Second, exploration outside the province is carried out in an orderly manner. Two-dimensional seismic acquisition was completed, the structural characteristics of blocks outside the province were further clarified, and the depression area and basement depth were confirmed, providing scientific basis for the next step of exploration. The well location demonstration work was completed, 5 wells were drilled, 2 wells were completed, and good oil and gas indications were discovered.

Third, the oil testing work has achieved remarkable results. The use of oil pipe swabbing technology has improved the efficiency of forced drainage. Oil and gas shows can be seen in various layers to varying degrees, and the production of oil tests has been greatly increased.

(2) Focusing on gas testing, new discoveries were made in natural gas exploration.

First, natural gas drilling is advancing rapidly. We intensified pre-drilling coordination and accelerated the pace of exploration. Gas formations were found in the Shihezi Formation, Shanxi Formation, and Benxi Formation to varying degrees. Shan 2, Shan 1, and He 8 had relatively good gas-bearing indications, forming the basis of this area. The main strength layer.

Second, major breakthroughs were made in gas testing work. The quality of gas testing operations was strictly controlled, and gas testing of 20 new wells and 22 layers in new layers was completed, and 7 wells and 8 layers of new layers in old wells were tested. Major discoveries were made in the Benxi Formation in the southern region.

The third is to speed up the construction of gas extraction stations. A leading group for the construction of a single-well gas production station has been established, and the construction of ground attachments in the station has been completed. The process equipment is in trial operation and is expected to be put into production by the end of October. (3) Actively carry out project evaluation and project research, and make new progress in international exploration.

First, the comprehensive evaluation of the Madagascar project was completed. Signed an agreement on joint investment cooperation in exploration, development and operation of oil and gas resources, drafted the contract and articles of association of the Madagascar project joint venture, established the Madagascar project department, and completed the well location demonstration report and staff training abroad for Block 3113 in Malaysia. Currently, Preparing to drill, supervisor is dispatched.

The second is to conscientiously make preliminary preparations for oil and gas exploration in Thailand. Collected, translated, and organized information on oil and gas exploration and development in Thailand, cooperated with the research institute in preliminary research, technical demonstration, and block evaluation, completed the project bidding process, and is currently working on drafting the Thailand project contract and formulating the exploration deployment plan for 2009.

The third is to launch a joint research project on natural gas exploration. Exchanges and consultations were conducted with relevant companies on issues such as cooperation methods, exploration scale, technology transfer and resource evaluation, and initial joint research was completed, and preliminary results can be submitted in the near future.

(4) Strengthen the management of drilling operations and further improve the level of process technology.

First, implement professional management of the drilling team. Adhering to the "four unifications" principle of unified standards, unified management, unified prices, and unified settlement, we actively introduced external cooperation teams and established a fair, orderly, and efficiency-first competition mechanism.

The second is to strengthen drilling quality supervision. We implemented a supervision and evaluation method that combines theoretical examinations, on-site evaluations, and single well evaluations, implemented technical measures, carried out follow-up services, strengthened on-site management, and significantly improved drilling quality.

The third is to speed up drilling progress. Adhering to the work idea of ??starting early and moving quickly, we overcame difficulties such as heavy workload, long construction front, and frequent relocation of drilling rigs, set a new drilling record, and won the initiative to complete the oil and gas exploration tasks throughout the year.

(5) The "Management Development Year" activities were carried out in depth, and corporate management was further strengthened.

First, establish and improve various management systems. We have formulated management systems for target responsibilities, bidding, construction operations, etc., implemented the target responsibility system assessment method of "three tests, one hanging and two vetoes", and established a professional management indicator assessment system. The organizational structure of functional departments of the agency has been established, department responsibilities have been clarified, and the management system has been streamlined.

The second is to strengthen financial operation and management. The establishment of the agency's financial organization and the transfer of finance to grassroots units were completed, and a financial operation system in line with corporate management was established. Strengthen financial information management, standardize basic accounting work, and improve business management levels.

The third is to strengthen basic management. Adhere to the principles of openness, fairness and impartiality, and fully implement the bidding and procurement system. Implementing a responsibility system for key project leaders to ensure the smooth progress of project construction. The "storage and direct sales" method of mud materials has been implemented to improve the quality of construction operations. Strictly control qualification examination, well input materials and operation quality, and standardize the external cooperation market. Interim regulations on internal audit work and interim measures on infrastructure project audits have been formulated to standardize audit behavior. We have done a good job in the "Four Certainties" work and improved the "five insurances and one housing fund" insurance system. Optimize the allocation of human resources and properly recruit 164 college students, technical school graduates and diverted personnel from the Yan'an office. The activities of "rectifying labor discipline and changing work style" and the three-month labor competition were carried out in depth, and a good production order and working order were established.

The fourth is to do a good job in safety and environmental protection. We have established emergency plans and prevention plans for various accidents, intensified the investigation and management of hidden dangers, carried out 14 safety inspections, investigated and rectified 52 hidden dangers, and achieved safe production without accidents. The solidification treatment of mud and other wastes effectively prevents environmental pollution.

(6) Increase efforts in technological research and significantly enhance technological innovation capabilities.

First, strengthen research on drilling technology. The drilling fluid system and formula were adjusted, the well structure was improved, and the logging items were adjusted to shorten the well construction period and increase the drilling speed.

The second is to strengthen research on reservoir stimulation technology. Cooperated with Changqing and Sinopec Daniudi Gas Field to optimize fracturing design, improve water quality standards, select low-density ceramsite, and introduce well temperature logging and fracture seismic monitoring technologies, achieving remarkable results.

The third is to speed up the implementation of scientific research projects. 14 scientific research projects were implemented and 12 contracts were signed. The 2007 natural gas seismic interpretation and processing work has been completed, and part of the results have been applied to the second batch of well location deployment this year. Preliminary research results have been achieved on the selection of traps in depressions in some exploration areas, and projects such as geological survey of relevant registration areas and early evaluation of oil and gas in the Qiangtang Basin are currently being implemented.

(7) Strengthen party building and corporate culture construction, and further accelerate the pace of creating harmonious enterprises.

First, three grassroots party committees of the Petroleum and Natural Gas Exploration and Development Department and the Drilling Engineering Department were established, 8 party branches were established, and a training class for leading cadres at the deputy director level and above to study the spirit of the 17th National Congress was held. The organizational construction has been further strengthened. The second is to hold a democratic life meeting of the company's leadership team, formulate the responsibility system assessment, accountability implementation methods and engineering construction team supervision and management systems for the construction of party style and clean government, and participate in engineering construction and material procurement and bidding, etc., effectively exerting the supervision function . The third is to establish the "Oil and Gas Exploration Newsletter" to increase external publicity and create a healthy and positive public opinion atmosphere. Fourth, we actively carried out fundraising activities for earthquake relief and disaster relief, and donated a total of 142,530 yuan to the disaster areas. We conscientiously carried out summer condolence work for employees and effectively mobilized the enthusiasm of employees for production. Fifth, activities such as karaoke, speeches, aerobics and table tennis competitions were held to enrich the amateur cultural life of employees. Sixth, a leading group for maintaining stability was established, formulated measures to maintain stability, and carried out in-depth investigation and mediation activities to ensure security and stability during the Olympics.

In 2008, the Shaanxi Provincial Administration for Industry and Commerce named the company a provincial-level "contract-abiding and credit-worthy" enterprise.