AAG Energy Gets Approval to Develop Mabi CBM Project in Shanxi Province

AAG Energy Limited (AAG) has received preliminary approval from the National Energy Administration (NEA) of China to develop its Mabi CBM project in Shanxi Province.

The commercial capacity of the first phase is expected to reach about 35 Bcf per year, with future commercial production expected to surpass 100 Bcf per year.

The Mabi CBM project is being jointly developed by CNPC and AAG's wholly-owned subsidiary Asian American Gas, Inc. (AAGI), with AAGI as the operator.

The preliminary ODP approval allows AAGI to start commercial development preparation and begin the process of obtaining government approvals necessary for the full-scale commercial development.

The Mabi CBM Block has audited net 3P reserves of approximately 2 Tcf and is only one of two CBM blocks that AAG has been exploring and developing in the Qinshui Basin in the Shanxi Province.

Panzhuang CBM block, another block developed by AAG, achieved formal ODP approval in 2011 and is the first and only Sino-foreign CBM Block in China to enter into commercial development. Panzhuang gross CBM production this year is expected to exceed 5 Bcf.

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