The Asia Miner

JUL-SEP 2017

The ASIA Miner - Reporting Important Issues to Mining Companies in the Asia Pacific Region

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28 | ASIA Miner | Volume 14 • Issue 3 | 2017 China CHINA National Petroleum Corporation's (CNPC) Consultation Cen- tre has approved the Qinshui Basin Chengzhuang Cooperative CBM Block (GCZ) development plan of coal bed methane (CBM) group Green Dragon Gas. The plan includes drilling an additional 147 production wells at GCZ in Shanxi Province in 2017 and 2018. Green Dragon is one of the largest independent companies in- volved in the production and sale of CBM gas in China and has eight operational blocks. These include the Shinzhuang South (GSS), Shinzhuang North (GSN) and Qinyuan (GQY) blocks, all in Shanxi Province, as well as Fengcheng Block (GFC) in Jiangxi Prov- ince, Panxie East Block (GPX) in Anhui Province and Baotian-Qing- shan Block (GGZ) in Guizhou Province. Gross annual GCZ production in 2017 is estimated at 3.01 billion cubic feet (Bcf) and in 2018, this is estimated to increase to 3.23 Bcf in 2018 with 2.64 Bcf expected from existing wells and 0.59 Bcf from new wells. On completion of the development plan, the estimated probable GCZ reserves of 15.7 Bcf are expected to be migrated to 1P re- serves, bringing Green Dragon's total 1P reserves to 29 Bcf. The development cost for GCZ is budgeted to be around US$53.80 million over 2017 and 2018. CNPC will invest US$28.51 million in accordance with its 53% participating interest and Green Dragon US$25.28 million based on its 47% interest. Green Dragon's chairman and founder Randeep S Grewal said: "This is a significant step forward for the company and further re- alisation of our strategy of progressing our resource base through to long-term production. The GCZ ODP, while only 0.44% of total acreage, fairly represents the profit potential of the asset portfolio." In the second half of 2017 Green Dragon aims to commence initial gas sales from GGZ, conclude a fourth development block in addition to GCZ, GSS and GGZ, and continue exploration on GQY, GFC and GPX blocks. It also aims to complete and file an ODP plan for GSS, in coop- eration with CNOOC, and to launch a LiFaBriC (lined faulted brittle coals) drilling program to further increase sales volumes in 2018. This methodology was developed specifically for China's geology where traditional drilling methods used in Australia or the US are not adaptable. It has allowed Green Dragon to crack the code of CBM production in China. 格瑞克公司(Green Dragon Gas 地成庄煤层气合作区块(GCZ)的煤层气(CMB) 开发方案已经获得中国石油天然气总公司 (CNPC 2017年和 2018年期间在山西省GCZ额外钻147口生产井。 作为中国最大的从事煤层气生产与销售的独立 公司之一,格瑞克公司拥有八个运营区块。这 些区块包括位于山西省的柿庄南(GSS)、柿 庄北(GSN)、沁源区块(GQY),位于江西省的 丰城区块(GFC),位于安徽省的潘谢东区块 (GPX),以及位于贵州省的保田-青山区块 (GGZ)。 GCZ2017年年生产总值预计30.1亿立方英 尺,2018年预计增至32.3亿立方英尺,其中 26.4亿立方英尺出自现有井,5.9亿立方英尺出 自新井。 开发方案成功完成后,GCZ 157亿 立方英尺预计转化至1P 司的1P 290亿立方英尺。 2017年和2018年GCZ开发成本预算约为5380万美 元。CNPC将根据其在此区块53%的参与权益投资 2851万美元,格瑞克根据其47%的参与权益投资 2528万美元。 格瑞克董事长兼创始人Randeep S Grewal先生 表示:"公司向前迈出了重要一步并进一步实 尽管GCZ ODP只占我们总区块面积的0.44%,却 很好地体现了公司资产组合的盈利潜力。" 2017年下半年,格瑞克目标是开始GGZ的初步天 然气销售,完成GCZ、GSS和GGZ以外的第四个开 发区块,继续GQY、GFC和GPX 公司目标还包括与CNOOC合作,完成并提交GSS 的ODP LiFaBriC(在有断层易破碎的 煤层下筛管)钻井项目,进一步提高2018年售 气量。这种方法是专门针对中国的地质情况开 不适用中国。它使格瑞克突破了在中国煤层气 产量的难关。 Testing at a Green Dragon Gas CBM project in China. GCZ CBM production plan approved GCZ煤层气开发方案获批

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