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AAG’s China coalbed methane project surpasses one billion cubic metres per day

12th June 2014

AAG Energy Limited (AAG), an independent coalbed methane (CBM) company in China, announced this week that the combined gross production from its Panzhuang and Mabi concessions surpassed 1 million cubic metres per day

AAG’s China coalbed methane project surpasses a billion cubic metres per day
Production at the Panzhuang concession has grown on average 50 per cent year over year since 2011 when Panzhuang became the first Sino-foreign Ccoperative CBM Project to obtain overall development plan (ODP) approval

“The achievement of this significant milestone represents a true team accomplishment and foreshadows more to come,” said Carl Lakey, chief operating officer. “We are on track for another great year, and expect this positive trend to continue.”

Production at the Panzhuang concession has grown on average 50 per cent year over year since 2011 when Panzhuang became the first Sino-foreign cooperative CBM project to obtain overall development plan (ODP) approval from the National Development and Reform Commission (NDRC).

Due to the swift production increases and rising natural gas price environment in China, AAG has increased revenue over 140 per cent since 2011 reaching USD 22.3m by the end of 2013.

Keeping pace with the rapid development in Panzhuang, in 2013 the Mabi concession obtained preliminary ODP approval from the National Energy Administration (NEA). Mabi has a first phase commercial capacity target of a billion cubic metres per year, with future commercial production expected to surpass 2.8 billion cubic metres per year.

“This milestone marker of 1 million cubic meters per day represents a 200 per cent production increase from a year ago levels,” said Steve Zou, founder, chairman, and CEO. “This speaks to the quality of our Panzhuang and Mabi assets and also our ability to utilize fit for purpose technology to rapidly commercialize CBM assets in an environmentally friendly and safe manner.”

 

 

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