GREEN DRAGON GAS TO DEVELOP SOUTH ZAOYUAN CBM PROJECT

August 01, 2017

Green Dragon Gas one of the largest independent companies involved in the production and sale of Coal Bed Methane (CBM) gas in China, is pleased to announce that the China National Development and Reform Commission (NDRC) has approved a Project Code for the Overall Development Plan (ODP) on the Greka Shizhuang South Zaoyuan portion of the Main Block (GSS).
GSS Zaoyuan ODP highlights:
– Total investment of US$190 million and covers an area of 50.7 km² of the total 388 km² GSS Block (US$114 million net to Green Dragon)
– Drilling of an additional 89 vertical wells by 2020 for an investment of c.US$82 million (US$49.2 million net to Green Dragon)
– On completion of the development, production capacity will be 14 Bcf per year, two Gas Gathering Stations, 265 vertical and 91 LiFaBriC wells
– To date, 223 vertical wells and 44 LiFaBriC wells have been drilled on the relevant 50.7 km² area in the GSS Block
– GSS and Chenghuang (GCZ) Blocks were both specifically mentioned within China’s 13th Five-Year Plan as being critical to domestic production requirements
The GSS Block is located in the Qinshui Basin with an area of 388 km². Gas in this area is imbedded in coal formations at average depths ranging from 600 meters to 900 meters. There are two major laterally continuous coal seams present throughout the GSS Block, namely coal seams #3 and #15. Green Dragon is the operator of the Block with working interest between Green Dragon (60%) and CNOOC (40%). The Company’s GSS Block has original gas in place of 3.2 Tcf.
Green Dragon Gas based in Zhengzhou, is a leading independent gas producer with operations in China. The Company has 559 Bcf of 2P reserves and 2,386 Bcf of 3P reserves across eight production blocks covering over 7,566 km² of license area in the Shanxi, Jiangxi, Anhui and Guizhou provinces. It holds six Production Sharing Agreements with strong, highly capitalised Chinese partners including CUCBM (CNOOC), CNPC and PetroChina, and has infrastructure in place to support multiple routes to monetise gas production. (Source and image: Green Dragon . PetroChina employee in South Zaoyuan)