Around the nation's energy resource development strategy, the shale gas investigation initiative had a satisfactory take-off, having discovered shale gas in the Qaidam and the Yin'e Basins, finding out a combination of exploration methods and techniques suited to the shale gas particularities of China and further consolidating our confidence in locating shale gas resources in main sedimentary basins. 1. CY-1 (Well Chaiye-1) drilled in Yuka on the northern margin of the Qaidam Basin resulted in 146.58m mud shale core, from which geological parameters of mid-Jurassic Dameigou Formation shale gas were yielded and 3 shale gas-rich intervals were delineated, marking a new area for continental shale gas exploration in China. 2. ET-2 (Well Etan-2) drilled in the Yin'e Basin encountered with dark shale interval of 245m (483m~728m) with gas anomaly being a common phenomenon. The desorbed gas content is 4.1m3/t. Many drill holes around contain oil in the micropores or microfissures of their mudstone intervals, exhibiting good resource potential for the Carboniferous-Permian shale oil and gas. 3. A shale gas-rich interval was detected for the first time in Chang-9 of Triassic Yanchang Formation in the Ordos Basin, marking a new series of strata for shale gas exploration. 4. Dark mud shale featuring widespread distribution, large thickness and rich organic content was discovered in Linxi Formation in Longjiang, Tuquan and Zhalute Basins outside the Songliao Basin, exhibiting good shale gas resource potential. 5. A number of favorable shale gas concentrated regions were delineated in the Mid-Upper Yangtze region including Wulong Sag, Daozhen Anticline and West Guizhou Synclinore.

Continental shale gas was discovered in CY-1(Well Chaiye-1) and HT-1 (Well Huangtan-1)