Pearl Oriental has acquired 100% exploitation interest of the Utah Gas & Oil Field project in U.S. in 2010, which is located in Uintah Basin of Utah, Midwestern of the United States, which has a very long history and a good location for oil and gas business with matured infrastructure including water, electricity, roads and other logistic facilities around.
The Utah Gas & Oil Field is a shale gas and oil field. According to the newly updated independent technical expert report, the net proved and probable (2P) reserves of the Utah Gas and Oil Field as at 31 December 2015 were estimated to be 94,510.8 MMCF for gas and 906.9 Mbbls for oil/condensate; among which, the net proved (1P) reserves were estimated to be 94,390.0 MMCF for gas and 831.0 Mbbls for oil/condensate, respectively.
There are six (6) shale gas producing wells in the Utah Gas and Oil Field with gas sale of around 13,774 thousand cubic feet in 2015 which is being sold to Anadarko’s midstream operations and other purchasers. On the other hand, there are two (2) shale oil producing wells with oil sale of around 2,149 barrels in 2015. Plains All American Pipeline, L.P., USA is the purchaser to collect the Group’s crude oil produced in the Utah Gas and Oil Field.
The Company has focused its business on oil and gas exploration, production and field operations in the Utah Gas and Oil Field, which is mostly a gas field. Being cleaner and cheaper energy, gas has more advantages than other traditional energy like coal and oil and has therefore been given priority to develop by the government of the United States. The Company would like to develop the field by cooperating with investors of solid financial strength to increase production and income of gas and oil business.