WellDog to Form Chinese JV to Develop CBM Resources

US WellDog and Shaanxi Provincial Institute of Energy Resources and Chemical Engineering have agreed to work together for development of coalbed methane sector in China.

The two parties signed a letter of intent to form a joint venture which will deploy reservoir, production and development technologies to demonstrate profitable CBM development in fields located within the Shaanxi province, WellDog, a Denver based technical services provider, said November 11.

"The introduction of WellDog technologies will contribute greatly to the efficient development of CBM and other unconventional oil and gas resources in China," stated SPIERCE director Zhou Lifa.

Signing of letter of intent (Credit: WellDog)

China's CBM resource is estimated at nearly 40 trillion m³ with recoverable reserves of about 10 trillion m³. Over the last few decades, China has dramatically increased investment in CBM technologies, and each of the country's five-year plans has increased CBM production targets, but the results to date have failed to meet those goals. Shaanxi is aiming to produce 20bn m³ of natural gas by 2020.

Shardul Sharma