CAMAC Energy Inc. reported that it has started drilling an initial well in the Ordos Basin in China. The well is the first in a two well program planned to explore and develop natural gas in the area.

The ZJS-02 well will be drilled at the company’s Zijinshan Gas project in Shanxi Province. If the well is successful, CAMAC Energy Inc. will follow up with the ZJS-03 well.

CAMAC Energy Inc. reported that the two well program is based on an appraisal of 160 kilometers of seismic data acquired in the Zijinshan Gas project area. The appraisal began in 2009.

The Zijinshan Gas project comprises approximately 175,000 acres in the Ordos Basin, which is the second largest oil and gas producing area in China. An assessment by a third party estimates that the Zijinshan Gas project may contain up to 3.8 trillion cubic feet of natural gas.

CAMAC Energy Inc. is the sole foreign oil and gas exploration and production company involved with the Zijinshan Gas project, and is partnering with Petro China CBM Co., a local Chinese company, on the development. CAMAC Energy Inc. reported that the area is near major pipeline infrastructure to help transport the production to the end user or buyer.

For more information on the company, go to www.camacenergy.com