Triple Energy to Frac & Test Yixin-1 Well

The Directors of Triple Energy Limited (TNP) are pleased to announce that further to its release(s) last week the Company has decided to fracc and test the Yixin-1 well.

As announced on 17 November 2015, the data from the Yixin-1 well is not conclusive but encouraging. Specifically, the gas readings from the core data, mud and wireline logs suggest that the coal seams below Seam#11 have sufficient indications of gas charge to justify a fracc and test operation over one or more seams.

The data from Yixin-1 below Seam #11 are similar to those observed in Xian Xian-1 well drilled in 2013 and hence the re-entry of the Xian-Xian-1 for fraccing and testing is also under discussion.

It is emphasised that the data from Yixin-1 is still not definitive at this stage but the decision to fracc and test is considered to be a logical forward program for technical and strategic reasons. A fracc and test should provide the data to determine the commerciality of this, and other possible future wells, in the area.

The varied results from the wells in the Hegang area demonstrate the complexity of the geology of this coal basin region. Whilst the seams are thick (at up to 15 meters) and gas-charged, it is now apparent that the gas charge varies from well to well, likely due to the faulting in the area.

It should be noted that the Bird Mountain area comprises only a small part of the Joint Venture acreage in Hegang and the results from Yixin-1 and Xian-Xian-1 (which are separate from the Bird Mountain Area) provide are sufficiently encouraging to progress a testing program in the current well.