China-Focused G3E Sees 2017 Output Fall

London-listed coalbed methane (CBM) producer G3 Exploration said January 30 that gross production for the full year 2017 in fields in which it is involved was 10.09bn ft³ (285.8mn m³), down by just over 10% year on year due to adjustments made in partner CNOOC's volume measurement methodology, as well as a decline in the Chengzhuang block's output. G3E net output however was only down by 3%.

The Shizhuang South block (GSS block), operated by G3E subsidiary Green Dragon Gas, saw a 10% increase in gross production to 4.47bn ft³ for the year 2017, compared to 4.08bn ft³ in 2016.

The GSS Block, operated by Chinese state producer CNOOC, produced 2.63bn ft³ gross in 2017, compared with 3.56bn ft³ in 2016.

Production at Chengzhuang Block, operated by another Chinese state producer CNPC, was 2.99bn ft³ gross in 2017 compared with 3.58bn ft³ in 2016

G3E total net equity gas sales in 2017 for the GSS operated wells and GCZ CNPC operated wells was 3.31bn ft³, down by 3% compared with 3.41bn ft³ during the same period in 2016. That 2017 figure included 1.94bn ft³ (up 3% from 2016) from the Green Dragon Gas block, 0.94bn ft³ (up 36%) from the CNOOC block, and 1.37bn ft³ (down 10%) from the CNPC block.

This year, G3E plans monetisation of production assets, Chengzhuang and Shizhuang South blocks, through a Hong Kong listing, it said.