Japan’s mission to successfully tap its shale reserves is pushing forward, and plans could include another horizontal well drilling and fracturing project.

Japan Petroleum Exploration Co. Ltd. (JAPEX) said it is devising plans for the project in the Fukumezawa oil field in the Akita prefecture based on the evaluation of the Ayukawa demonstration experiment. The project would target the Onnagawaa tight oil formation, which the company said is distributed in the same way as the Ayukawa oil and gas field.

“We are currently studying the details of schedule for implementation and the scope of work involved while seeking cooperation and support from all parties concerned,” JAPEX said in a news release. “We are also conducting surveys and studies from a range of perspectives to pay sufficient attention to the environment.”

JAPEX is applying technical knowledge gained from its participation in a shale oil development project in the Eagle Ford shale play, where more than 386,700 b/d of oil were produced in 2012, according to statistics from the Texas Railroad Commission. From January to May 2013, the figure is up to more than 564,400 b/d.

The company’s domestic R&D efforts targeting tight oil reached a milestone in October 2012 when it successfully extracted crude oil from a test sample at the Onnagawa formation using an existing well, the Kurosawa AK-1 (AK-1), at the Ayukawa oil and gas field in Yurihonjo City. Since then, the project –a joint effort with Japan Oil, Gas, and Metals National Corp. – has undergone acid treatment tests as well as two flow tests, the results for which were released July 25.

“[The] AK-1 well produced a cumulative total of 1,521.3 kl [9,569 bbl] of crude oil through the acid treatment test and two subsequent flow tests carried out in October [2012]. In total, 141.6 kl [891 bbl] of acid treatment fluid was injected for this acid treatment, and a cumulative total of 127.5 kl [802 bbl] was recovered,” Japex said in the release. The oil production rate at the end of the second flow test was confirmed at [approximately] 40 kl [252 bbl] per day. As a result of the acid treatment, daily production at the AK-1 well increased by at least 20 times compared to what it was prior to the acid treatment.”

Given the results, JAPEX plans to consider commercial production at the AK-1 well.

An estimated 5 MMbbl of shale oil reserves are believed to be in the Akita. The amount represents only about 10% of the country’s annual demand.

Information from the US Energy Information Administration shows Japan relies heavily on imports. In 2010, oil imports were needed to meet about 42% of the country’s energy needs. Reliance also is heavy on LNG imports, which is almost entirely imported, making Japan the world’s largest LNG importer.

The Fukishima nuclear power plant accident prompted Japan to further step up its efforts to meet energy demand as Japanese companies worked to secure more LNG.

JAPEX, for example, acquired in April 2013 a 10% interest in a shale gas production license in Canada’s North Montney area. The shale gas will be taken to an LNG plant with an annual production capacity of 12 million tons. JAPEX’s share of the supply would provide about 1.2 million tons per year of LNG to Japan, the company said.

Contact the author, Velda Addison, at vaddison@hartenergy.com.