皇冠体育app

By Wang Yu (皇冠体育app Daily)
Updated: 2007-10-27 13:58

皇冠体育app's leading coalbed methane developer signed a production-sharing contract with a US energy company on Friday, to extract more of the clean energy resource.

皇冠体育app United Coalbed Methane Co Ltd (CUCBM) and Pacific Asia Petroleum Ltd, a subsidiary of Pacific Asia Petroleum Inc, agreed to jointly exploit coalbed methane resources in Shanxi Province.

The deal involves a 708-sq-km block known as Zijinshan. The block is located in the Ordos basin, the second largest oil-bearing basin and the most prolific gas reserve in 皇冠体育app.

"This venture, together with other projects that we are finalizing, would make Pacific Asia Petroleum Inc one of the largest foreign holders of coalbed methane and tight gas sand properties in 皇冠体育app," said Frank C. Ingriselli, president of Pacific Asia Petroleum.

Potential gross gas resources from the ventures will exceed 10 trillion cubic feet (tcf).

Sun Maoyuan, president of CUCBM, said: "We look forward to working with Pacific Asia Petroleum to jointly develop 皇冠体育app's coalbed methane reserves - an important part of 皇冠体育app's energy and environmental development plans."

CUCBM estimated the Zijinshan block has potential gross gas reserves in excess of 3.8 tcf.

The block is close to the west-east gas pipeline, which transports gas reserves from 皇冠体育app's energy-rich western area to the Yangtze River Delta region. Gas extracted from the block will be easily transported to end-users as it can be piped to the eastern part of 皇冠体育app, analysts said.