Green Dragon Gets Moving with Chengzhuang CBM Block

Coalbed methane explorer Green Dragon Gas has received China National Development and Reform Commission (NDRC) approval for a project code for the overall development plan on its Chengzhuang Block, it said September 15.

“State approval of the project code means that the company can commence the Block's ODP and further develop the acreage,” Green Dragon said.

The company has a 47% participating interest in the block with its 53% partner, China National Petroleum Corporation (CNPC).

Contract area is 67 km² of which ODP covers an area of 33 km², with proved reserves of approximately 275bn ft³. As of date, 114 wells have been drilled on the acreage. The development plan is now being implemented by the joint management committee and includes the drilling of an additional 147 production wells to be drilled by year end 2018. Gross production capacity is estimated to be 6.36bn ft³/yr.

The development cost for the block will be $53.80mn over 2017 and 2018. CNPC will invest $28.51mn and Greka $25.28mn.

The block is located in the prolific Qinshui Basin in China’s Shanxi province.

Shardul Sharma