Crude Oil : Shaogen Project

Shaogen Project

The Shaogen Contract Area is located in Chifeng City in the Inner Mongolian Autonomous Region.The area covers about 136 sq. miles and is adjacent to the Kerqing Oilfield.

In 2005, China and the Inner Mongolia Municipality awarded Chifeng Zhongtong Oil and Natural Gas Co. the exclusive authority to develop and exploit resources in the Shaogen Contract Area.    

In July 2006, an independent oil consultant concluded that “there is a very high potential for oil resources with excellent geographical conditions for petroleum” and that “the petroleum system has been proved as there are existing wells in the area with tested transmission infrastructure in place.”

The potential oil resources are estimated to be in excess of 100 million barrels.

In August 2006, Pacific Asia Petroleum signed a cooperation and joint development contract with Chifeng Zhongtong Oil and Natural Gas Co. to acquire a 95% share of crude oil production revenues.

We are currently working towards securing appropriate licenses for the existing Shaogen acreage.  At the same time we have entered into initial discussions in regards to applying our Enhanced Oil Recovery and Production (EORP) technologies at the Kerqing Oilfield with the objective of participating in future incremental production.