A Chinese company, Zon Hen Yu Tian, has struck oil at the Galba 11 exploration site at Khanbogd Soum, Umnugovi Aimag. Galba 11 is one of 22 projects where four foreign companies received an exploration licence in 1992. Incidentally, these licences are due to expire very soon.
Zon Hen Yu Tian signed a product sharing agreement in 2009 after discovering oil at all 14 drill holes in its licensed area in Umnugobi. It pumped 1,500 cubic metres of oil before work was halted because it lacked a reserve estimate and as well as a clear sales plan. The company
used 3D seismic exploration methods on 358.9 sq km after passage of the new Petroleum Law last July. Present indications are that the oil reserve amount is similar to that in the Tamsag deposit where PetroChina has a unit.