China Approves G3 Project

China-focused coalbed methane (CBM) explorer G3 Exploration's development plan for its Chengzhuang block has been cleared by the Chinese authorities.

The China National Development and Reform Commission (NDRC) issued its final approval for the overall development plan (ODP) on the Chengzhuang block, said G3 October 3, adding the approval facilitates the permits for the company and its partner to further develop the acreage.

G3, formerly known as Green Dragon Gas, has a 47% participating interest in the GCZ Block with its 53% state-owned partner China National Petroleum Corporation (CNPC). The project is located in Shanxi Jincheng Qinshui county with a contract area of 67 km² of which ODP covers an area of 33 km².

G3 is under ‘special observation' by the Oslo stock exchange (OSE) which said that information it received a year ago was that bonds issued by G3 had not been repaid despite their maturity.