Australia's Triple Energy Gets Stake in CBM Blocks in China's Ordos Basin

Australia's Triple Energy has signed a non-binding Letter of Intent (LoI) to acquire Xian Moke Industrial (Moke) and consequently operatorship of up to four coal bed methane blocks in the Ordos basin of Shaanxi province in China.

The LoI includes total of four blocks covering around 146 square miles (378 square kilometers).

The Tongchuan Block, in northeast Shaanxi province, already has eight CBM wells drilled with seven currently on test production while Wang Feng Block has four wells drilled to date with two on test production and a full field development plan is underway.

The above two CBM blocks held by Moke are well suited to the growth plans and overall strategy of Triple Energy, the company said, adding that the other two blocks over which the LoI provides a first right of refusal will be assessed in more detail in due course.

Triple Energy currently holds an 80 percent interest in a Cooperative Joint Venture (CJV, known as Aolong Energy) with LongMay Coal Mining Company (Longmay), one of China’s largest state-owned coal mining companies. The CJV has the objective of degassing the coal mining leases held by Longmay and has a life of 45 years.