OREANDA-NEWS. Japan Petroleum Exploration Co., Ltd. (hereafter, “JAPEX”) has, since March last year, been undertaking research and development project, including demonstration experiment, at its oil fields in Akita Prefecture to challenge for the first tight oil (shale oil) development in Japan.

 As part of the work, JAPEX carried out acid treatment tests at the Onnagawa tight formation in October last year by utilizing an existing well of Kurosawa AK-1 (hereafter, “ AK-1 well”) at Ayukawa oil and gas field (Yurihonjo City, Akita Prefecture). Subsequently, two flow tests were carried out to get a more accurate understanding of the capacity of AK-1 well. As a result, a constant amount of tight oil production was confirmed (hereafter, “the Ayukawa demonstration experiment”).

 The results including production volume on the Ayukawa demonstration experiment have now been compiled and the relevant information is presented below. Based on these results, we would also like to inform you of new plans underway for demonstration experiment at other oil field having the Onnagawa tight formation located in the same prefecture.These tight oil initiatives were carried out with the support of the Japan Oil, Gas and Metals National Corporation (JOGMEC). Please refer to our press releases dated July 20, October 4, and October 10, 2012, for more information about the Ayukawa demonstration experiment and an outline of the agreement with JOGMEC.