| Erlian Oilfield is located in the hinter of Erlian
basin - one of ten largest basins in China, within the beautiful grassland
of Xilingele. Commercial oil flew from wells Ar-2 and Sai-1 during
Aug. to Sept. 1981, leading to the discovery of Erlian oilfield. The
discovery of some large oil and gas fields such as Arshan was the
result of ongoing rolling exploration for eight years. Erlian is a
large oilfield with an annual productivity of one million tons, featuring
multi-type reservoirs, complex geological condition and harsh development.
As of the end of 1997, it had an accumulative proven oil-bearing area
of 105 km2 and a proven OOIP of 1.68¡Á108t. The yearly production in
Erlian oilfield was up to 120¡Á104 t at that time. |