Green Dragon Gas Advances Baotian-Qingshan CBM Block
China-focused unconventional hydrocarbon explorer Green Dragon Gas on September 26 said its Baotian-Qingshan (GGZ) coalbed methane block is ripe for development.
“In accordance with our 2016 objectives announced at our 2016 Capital Markets Day, the GGZ block has progressed from an exploration block into our development portfolio. The block is an exciting prospect as it contains multiple prospective coal seams and is located in Southern China, which has historically been short on gas production,” Randeep S Grewal, chairman of Green Dragon Gas, said.
Green Dragon Gas is the operator with a 60% interest in the GGZ block, located within the Liupanshui coal field, that covers a total area of 214,982 acres (870 km²) in Guizhou province. PetroChina is the working interest partner with the remaining 40% interest. There are 30 coal seams present in the block of which seven are considered prospective for development, the company said. The total gas-in-place is estimated to be 4.55 trillion ft³ (129bn m³).
Green Dragon's gas infrastructure (Credit: Green Dragon Gas)
The company said its focus for the GGZ block is to secure approvals for the Chinese Reserve Report (CRR) from the Ministry of Land Resources (MLR). CRR is a precursor to approval of the Overall Development Plan (ODP), expected to be in 2017. In the exploration phase Green Dragon has drilled a total of 33 wells. The GGZ field is proximate to both the China Myanmar Oil & Gas pipeline and the Guizhou Natural Gas pipeline both of which could be used as a means to transport gas from the GGZ block to end users, the company stated.
Additional potential from shale
In addition to the CBM plays in Guizhou, both Sinopec and Chevron, among others, have announced shale gas finds in Guizhou province. Green Dragon informed that should these finds be confirmed as commercial they could indicate the potential for shale exploitation within the GGZ block. “While the development of shale prospects is at an early stage in Guizhou initial exploration results in the region have been encouraging,” the company said.
Shardul Sharma