Completed Drilling of 33 Wells in 2021
Average Daily Production Volume Surged by 130% YoY
HONG KONG SAR - Media OutReach - 16 December 2021 - Yanchang Petroleum International Limited ("Yanchang Petroleum International" or the "Company"; Stock Code: 00346) is pleased to announce that its wholly-owned subsidiary, Novus Energy Inc. ("Novus"), which explores, develops and produces crude oil and natural gas in Saskatchewan and Alberta in Canada, delivered outperforming operational results in its Viking formation. The average daily production volume increased from 1,000 barrels/day in December 2020 to 2,300 barrels/day currently, representing a 130% year-on-year growth.
With the easing of the pandemic and the recovery of commodity prices in 2021, the Novus team has adopted a positive and aggressive well drilling plan in 2021. Amongst others, a total of CAD41 million has been invested in the development of the Viking properties to shorten the time between drilling and production and to maximize profitability. In 2021, Novus has drilled 33 wells in the Viking formation, four in Alberta and 29 in Saskatchewan, reaching a total length of 28.8km in its horizontal section and achieving an industry-leading drilling speed of 2.9 days/well. Completion of the Viking wells is also in progress.
In addition, Novus has successfully drilled a new well in the exploration area in Saskatchewan, which has been fracture completed and has started production.
Mr. Feng Yinguo, Chairman of Yanchang Petroleum International, said, "We are pleased with the operational results of Novus this year. The production ramp-up program launched by Novus is proven to be successful. The Novus team has strived to ensure the normal and safe operation of the formation during the pandemic, and aimed to improve the efficiency of well drilling and completion. With the global economy reviving, it is expected that demand will drive up the oil price steadily. The Company will continue to seize favorable opportunities, improve the quality and efficiency, and keep optimizing the oil and gas business of Novus, thereby maximizing the benefits of the shareholders of the Company."
About Yanchang Petroleum International (Stock Code: 00346)
Yanchang Petroleum International is principally engaged in the following activities (i) exploration, exploitation and operation of oil and gas; and (ii) fuel oil trading and distribution. In its upstream operations, Yanchang Petroleum International possesses operating oilfields in Saskatchewan and Alberta, Canada, through its wholly owned subsidiary Novus Energy Inc., a Canadian enterprise. Novus engages in the business of acquiring, exploring for, developing and producing crude oil and natural gas. In its downstream operations, Yanchang Petroleum International is principally engaged in wholesale, retail, storage and transportation of oil products through its 70% owned subsidiary, Henan Yanchang Petroleum Sales Co., Limited, and which has been granted valid licenses for distribution and sales of oil products in China. The Group also established oil products trading companies in Zhoushan, Zhejiang and Shenzhen, China, respectively, for expanding its oil products trading business which will become a new profit driver.
The issuer is solely responsible for the content of this announcement.