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CBM development in China

World Coal,


CAMAC Energy Inc., today announced the commencement of drilling on the first of two wells planned for the 2010 work programme on its Zijinshan gas asset located in the Ordos Basin in Shanxi Province, China. Drilling has begun on well ZJS-02, which is planned to be followed consecutively by well ZJS-03.

Wells ZJS-02 and ZJS-03 are part of a planned multi-well appraisal programme that commenced in 2009 after the company acquired 160 km of 2D seismic data over the Zijinshan gas asset.

Under its 11th five-year plan to expand coal bed methane (CBM) production, announced in July 2006, the National Development and Reform Commission (NDRC) planned to double CBM production to 10 billion m3 by 2010 from 4 billion m3 in 2006. In order to achieve this, the Chinese government has rolled out preferential policies to attract foreign investment and bring in the technological know-how to accelerate CBM production.

The head of the Company’s China operations, Mr. Richard Grigg, Managing Director and Senior VP of CAMAC Energy, commented, “Our Zijinshan gas asset is an exciting project for us at CAMAC Energy as well as for our Chinese partners. With China’s increasing drive for cleaner burning fuel, we are pleased to have the support from the national, provincial, and local levels of government in China for our efforts to bring early production from the Zijinshan gas asset.”

The company’s Zijinshan gas asset covers an area of 175,000 acres in the Ordos Basin in Shanxi Province, the second largest petroleum-bearing basin in China. China United Coal Bed Methane Company (CUCBM) estimated that the Zijinshan gas asset has potential gross gas resources in excess of 3.8 trillion ft3.

CAMAC Energy owns 100% of the foreign contract interest in the Zijinshan production sharing contract (PSC) in partnership with PetroChina CBM Co. The Zijinshan gas asset is in close proximity to major infrastructure, including the West-East Gas Pipeline and the Ordos-Beijing Pipeline. Under the current Chinese economic stimulus initiative, another new gas pipeline is near completion in the Ordos Basin, also in close proximity to the Zijinshan gas asset.

Read the article online at: https://www.worldcoal.com/coal/20082010/cbm_development_in_china/


 

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