CHINA National Petroleum Corporation’s (CNPC) Consultation Centre has approved the Qinshui Basin Chengzhuang Cooperative CBM Block (GCZ) development plan of coal bed methane (CBM) group Green Dragon Gas. The plan includes drilling an additional 147 production wells at GCZ in Shanxi Province in 2017 and 2018.


Testing at a Green Dragon Gas CBM project in China.

Green Dragon is one of the largest independent companies involved in the production and sale of CBM gas inChina and has eight operational blocks. These include the Shinzhuang South (GSS), Shinzhuang North (GSN) and Qinyuan (GQY) blocks, all in Shanxi Province, as well as Fengcheng Block (GFC) in Jiangxi Province, Panxie East Block (GPX) in Anhui Province and Baotian-Qingshan Block (GGZ) in Guizhou Province.

Gross annual GCZ production in 2017 is estimated at 3.01 billion cubic feet (Bcf) and in 2018, this is estimated to increase to 3.23 Bcf in 2018 with 2.64 Bcf expected from existing wells and 0.59 Bcf from new wells.

On completion of the development plan, the estimated probable GCZ reserves of 15.7 Bcf are expected to be migrated to 1P reserves, bringing Green Dragon’s total 1P reserves to 29 Bcf.

The development cost for GCZ is budgeted to be around US$53.80 million over 2017 and 2018. CNPC will invest US$28.51 million in accordance with its 53% participating interest and Green Dragon US$25.28 million based on its 47% interest.

Green Dragon’s chairman and founder Randeep S Grewal said: “This is a significant step forward for the company and further realisation of our strategy of progressing our resource base through to long-term production. The GCZ ODP, while only 0.44% of total acreage, fairly represents the profit potential of the asset portfolio.”

In the second half of 2017 Green Dragon aims to commence initial gas sales from GGZ, conclude a fourth development block in addition to GCZ, GSS and GGZ, and continue exploration on GQY, GFC and GPX blocks.

It also aims to complete and file an ODP plan for GSS, in cooperation with CNOOC, and to launch a LiFaBriC (lined faulted brittle coals) drilling program to further increase sales volumes in 2018. This methodology was developed specifically for China’s geology where traditional drilling methods used in Australia or the US are not adaptable. It has allowed Green Dragon to crack the code of CBM production in China.


格瑞克公司(Green Dragon Gas)宣布沁水盆地成庄煤层气合作区块(GCZ)的煤层气(CMB)开发方案已经获得中国石油天然气总公司CNPC)咨询中心的批准。该计划包括2017年和2018年期间在山西省GCZ额外钻147口生产井。





格瑞克董事长兼创始人Randeep S Grewal先生表示:“公司向前迈出了重要一步并进一步实现了我们发展资源基础直至长期生产的战略。尽管GCZ ODP只占我们总区块面积的0.44%,却很好地体现了公司资产组合的盈利潜力。”



Resource Center Whitepapers, Videos, Case Studies