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(Houston, Texas) Tradewinds Oil and Gas International, Ltd., a Texas limited partnership managed by general partner Tradewinds Oil and Gas, Inc., a private Texas corporation, has announced it has entered into a Study Agreement with a unit of China National Petroleum Corporation (CNPC), the national oil company of the People’s Republic of China. The Agreement covers the 30.2 km2 Shuangliu Block of the Liaohe Oilfield in Liaoning Province. Under the Agreement, Tradewinds has six months to study the field data and to devise a plan to enhance production. With favorable results, the company will enter into negotiations for a production sharing agreement. Tradewinds has engaged the services of a world renowned consulting firm to evaluate the data and conduct the feasibility study.
Shuangliu Block, discovered in 1978, contains 44 wells and at its peak, produced about 6,500 BOPD and substantial amount of gas. It has been on steady decline since that time and now produces less than 600 BOPD from 27 wells.
“Ideally“ said James E. Scott, III, President of Tradewinds, “Tradewinds will be able to economically improve recovery and increase production above the current level of decline under a mutually acceptable production sharing agreement. This is our first foray into China and we look forward to it being technically and economically successful. We believe in the potential in China and are seeking other attractive opportunities in the country”.
Other countries and areas where Tradewinds is active include Indonesia, Egypt, and West Africa. Through an affiliate, the company owns a 25% interest in the Gazwarina oil field operated by a unit of Marathon Oil Company in Egypt. Tradewinds also recently announced several acquisitions in Indonesia.
Tradewinds is focused on acquiring international undeveloped discoveries, underdeveloped fields, fields requiring rehabilitation and marginal fields that are below the economic threshold of larger companies. “We prefer producing properties with development, rehabilitation, improved oil recovery and enhancement opportunities as well as those with an exploration component. Exploration projects, where the financial and work commitments have been met, are also of interest. Both non-operated and operated properties will be considered for acquisition,” Scott said.