OnApril 9^th, the completion of the Wen-21 Well, drilled by ZPEC Rig 14,marked the successful completion of the first round of wells drilled by the 4drilling rigs at the ZPEC Wensu Project this year, winning the first battle.

Affectedby COVID-19, the recovery time of each rig was delayed compared to the originalplan. After the efforts had been started in an orderly manner, the projectcompleted all of the protection work in accordance with the requirements of thedefense and control of COVID-19 in the Xinjiang region.  Some of the key personnel were unable toarrive on time, thus requiring the adoption of the method of part-time post, one-man-multiple-postin order to put full efforts into the drilling production.

Duringthe construction period, the four rigs improved their production organizationin accordance with the principle of “Stabilizing the Formation and Locating theOil Layer”.  Thus optimizing theperformance of the drill bit and drilling fluid, keeping abreast of theproduction and personnel dynamics, and strictly following the instructions to acquirethe formation and protect the oil and gas layer while ensuring the accuracy ofoil and gas data in each well. Finally, the Saike-10 Well, drilled by ZPEC Rig12, completed drilling at 923 meters on April 7^th, the Wen-19 Well, drilledby Rig 13, completed successfully at 2,007 meters on April 3^rd, theWen-22 Well, drilled by Rig 4, was completed at 1,909 meters on April 6^th,and the Wen-21 Well, drilled by Rig 14, was completed at 1,930 meters on April9^th . From the logging results, the four exploratory wells showedgood oil and gas performance and achieved the expected purpose.

Thisyear is the second year for the discovery of oil and gas in the ZPEC Wensu Block.Through preliminary exploration, drilling, and trial production, ZPEC obtaineda clearer understanding of the geological structure, rock characteristics, andoil and gas display distribution. In 2019, the company decided to develop 27exploration and evaluation wells and completed 18 wells,conducted oil and gas testing at 14 wells, and produced about 130 tons of crudeoil per day. In 2020, 50 wells are planned to be developed, with a totalfootage of 93,500 meters.