China CBM Firm Makes Profit
China focused coalbed methane explorer AAG Energy Holdings has reported a profit of yuan 106.6mn ($15.45mn) for the year to December 31, 2016, the company said April 5.
In 2016, total gross production increased by 7% to 541mn m3 (19.1bn ft3), comprising 506mn m3 from Panzhuang block and 35mn m3 from Mabi block. The gross gas sales volume increased by 3.5% to 496mn m3 (17.5bn ft3), compared with 2015.
Panzhuang project (Credit: AAG Energy)
Panzhuang became the first ever Sino-foreign CBM project to complete development and officially enter production phase, AAG informed.
Mabi saw record pilot production as it approaches Overall Development Plan Phase I approval.
AAG Energy’s key operating assets, Panzhuang and Mabi concessions, are located in the southwestern part of Qinshui Basin, which boasts the largest proved CBM geological reserves of any basin in China. AAG Energy’s Panzhuang concession is in partnership with China United Coalbed Methane Corporation. The project has a designed annual production capacity of 500mn m3. The Mabi project is in partnership with PetroChina and the design production capacity of Mabi phase one is 1bn m3/yr.
Shardul Sharma