Green Dragon Gets ODP Approval for China CBM Project
China focused coalbed methane explorer Green Dragon Gas has received China National Development and Reform Commission’s approval for its overall development program (ODP) on the Greka Shizhuang South Zaoyuan portion of the main Greka Shizhuang South Block (GSS Block).
It said July 31 that the ODP does not require an approval process and only needs to be registered.
The company has a 60% participating interest in this block with its 40% partner, China United Coalbed Methane Corp (CUCBM), a wholly owned subsidiary of China National Offshore Oil Corporation.
The total investment will be to the tune of $190mn and the ODP covers an area of 50.7 km² of the total 388 km² GSS Block ($114mn net to Green Dragon). About 42 additional vertical wells and 47 LiFaBriC wells will be drilled by 2020. On completion of the development, production capacity will be 14bn ft³/yr.
The GSS Block is in the Qinshui Basin in Shanxi Province.
Shardul Sharma