Primeline Energy said drilling operations are now underway for the LS30-1 well offshore China.
The well is the second of two wells planned for this year and is aimed at finding more gas resources.
The LS30-1 well will target a large channel sand prospect which will be drilled down to a depth of around 1,800 metres.
The targeted reservoir is the same as the one which produces at the nearby LS36-1 location, 25 kilometres away.
The drill programme is expected to last for around 25 days.
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