AAG Energy's CBM Output in China's Panzhuang Concession Crosses 50 MMcf/d

China focused coal bed methane producer AAG Energy Limited (AAG) on Monday said gross daily CBM production from its Panzhuang concession exceeded 50 million cubic feet per day (MMcf/d).

The company added that the average gross daily CBM production rate for the 49 horizontal wells currently in service in Panzhuang, surpassed the rate of 1 MMcf/d per well per well

The 49 horizontal wells have been in production from between approximately 8 years to 1 year and have an average of 3.1 years in service as of Dec. 24, 2014.

Situated in Jincheng, a city within the southern Qinshui Basin and in Shanxi Province, the Panzhuang concession extends over an area of 141.8 square kilometers. AAG is partnering CUCBM for the Panzhuang PSC.

AAG believes the continued ramp-up in production will likely allow Panzhuang to reach commercial capacity of 17.5 billion cubic feet (Bcf) in 2015.