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New oil, gas field discovered in Inner Mongolia
(Xinhua)
Updated: 2005-08-05 18:09

An oil exploration firm has detected rich oil and gas resources in north China's Inner Mongolia Autonomous Region, company sources said Friday.

Their preliminary exploration indicates the Songshan Basin in the city of Chifeng has at least 120 million tons of proven oil reserves, a spokesperson with the No. 2 Drilling Company of Liaohe Oilfield told Xinhua.

Liaohe Oilfield, one of the country's largeset three oilfields,started its first round of excavation in Chifeng in July 2003 and drilled five wells, three of which contained oil and gas.

Further explorations since last November proved the region boasts rich reserves that can be exploited with conventional technologies.

Earlier this year, Liaohe Oilfield reached deal with Chifeng city government to jointly tap the oil and gas resources. The company has also founded a branch in Chifeng to conduct the excavations.

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