Breakthrough at Banks Project: First Horizontal Sand-Control Well 6081 in Eastern Fault Zone Yields High Oil Output

Summary:
The PM Oilfield’s eastern fault zone has achieved a major exploration and development breakthrough, with newly identified reserves exceeding 5 million tonnes. Horizontal well 6081, the first well deployed with precision sand-control screens in the complex eastern fault zone, has shown stable high oil production. Since its launch on April 11, 2025, the well has reached 18.0 m³/day of crude oil with a 40% water cut as of April 16. The well is slated for future thermal recovery enhancement, marking a new stage in the development of this geologically challenging zone.

Challenging Conventional Wisdom: Historic Breakthrough in Fault Zone Exploration
Traditionally regarded as a hydrocarbon barrier, the eastern boundary fault of the PM Oilfield was considered uneconomical for development due to unclear stratigraphic correlation near the faults. However, in April 2024, exploratory well 5836-D3L detected exceptional gas readings (peaking at 2000, averaging 800) between 1150–1257m, and high oil saturation in rock cuttings from 1400–1450m—providing the first confirmation of significant resource potential east of the fault.

One Year of Intensive Study Leads to 18.22 Million Tonnes of New Geological Reserves
Over the past year, the research team conducted systematic studies to clarify the development sequence of three fault blocks and three stratigraphic units, completing refined sandbody correlations. The effort yielded an estimated 18.22 million tonnes of newly identified original oil in place (OOIP). Based on this, three legacy wells were reperforated in new zones with a 100% success rate in yielding oil, paving the way for scalable development.

Well 6081 Leads the Way: 18 m³/day Achieved in Initial Cold Production
As a flagship evaluation well of 2025, Well 6081 was completed on March 30 and showed immediate oil overflow at the wellhead. After commencing cold production on April 11, output quickly rose to 18 m³/day and remains under optimization. Two additional evaluation wells launched in parallel are also progressing steadily.

Expert Insight: A Global Challenge in Fault Zone Development is Being Solved
Experts note that this breakthrough not only validates the resource potential of the eastern fault zone but also advances technological solutions for developing complex faulted reservoirs. The combination of precision sand-control horizontal wells with future thermal recovery technologies offers a model for efficient production, with significant implications for boosting reserves and output in similar formations.

Looking Ahead: PM Oilfield Accelerates Development Planning
The Banks Project team is expediting the overall evaluation and development planning for the eastern fault zone. Ongoing capacity building and technological innovation are expected to drive high-quality growth and maximize the value of this newly unlocked asset.