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.

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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.


GCZ煤层气开发方案获批

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。

作为中国最大的从事煤层气生产与销售的独立公司之一,格瑞克公司拥有八个运营区块。这些区块包括位于山西省的柿庄南(GSS)、柿庄北(GSN)、沁源区块(GQY),位于江西省的丰城区块(GFC),位于安徽省的潘谢东区块(GPX),以及位于贵州省的保田-青山区块(GGZ)。

GCZ2017年年生产总值预计30.1亿立方英尺,2018年预计增至32.3亿立方英尺,其中26.4亿立方英尺出自现有井,5.9亿立方英尺出自新井。

开发方案成功完成后,GCZ当前概算储量157亿立方英尺预计转化至1P储量,继而使格瑞克公司的1P储量达到290亿立方英尺。

2017年和2018GCZ开发成本预算约为5380万美元。CNPC将根据其在此区块53%的参与权益投资2851万美元,格瑞克根据其47%的参与权益投资2528万美元。

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。”

2017年下半年,格瑞克目标是开始GGZ的初步天然气销售,完成GCZGSSGGZ以外的第四个开发区块,继续GQYGFCGPX区块的勘探作业。

公司目标还包括与CNOOC合作,完成并提交GSSODP方案,开展LiFaBriC(在有断层易破碎的煤层下筛管)钻井项目,进一步提高2018年售气量。这种方法是专门针对中国的地质情况开发的,在澳大利亚或美国使用的传统钻探方法不适用中国。它使格瑞克突破了在中国煤层气产量的难关。

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