G3 Exploration, an independent specialist in the exploration and development of coal bed methane gas (CBM), with roots in China and a focus on international expansion, has provided a progress update of the exploration and development activities for its Baotian-Qingshan ('GGZ') Block, situated in the Guizhou Province, China.
GGZ Block highlights as of year-end 2017:
Successfully drilled 45 CBM production wells (23 vertical, 19 directional and 3 LiFaBriC), de-risking 30 Bcf of gas with a P10 NPV of over US$300 million
15 wells were put on production and 7 wells have shown initial commercial gas rates. Daily well performance is being monitored by the Company to assess long term production ranges
A total of 219,827 feet (67 km) of 2D seismic was acquired during the period
Obtained selected slim-hole data for 585 wells previously drilled by the Coal Bureaus, with the availability of significant coal seam and surface data
A highly reliable and credible geological subsurface model has now been created to determine future development plans and subsurface optimisation over the 107km≤ block
In addition to the current 7 online production wells, the 45 drilled wells in 2017 will be stimulated and put online in H2 2018 to commence initial gas sales from the GGZ Block
Chinese Proved Reserves Report (CRR) submitted ahead of approval of the Overall Development Plan (ODP), which is anticipated to be compiled in H2 2018
The anticipated commerciality of the GGZ Block will create additional shareholder value, as the block follows GCZ and GSS from development into production
Mr. Randeep S. Grewal, Chairman and CEO of GE Exploration, commented: 'The GGZ Block has progressed from exploration into development and is an exciting proposition as it contains multiple prospective coal seams. The block is located in Southern China, which has historically been short of gas production.
'We see the GGZ Block offering considerable additional value to our shareholders. As a result, we will be progressing with the CRR and ODP during the course of the year. Realising the potential of the GGZ Block is a priority objective for the Company in the medium term and one that I believe will achieve our dual aims of actively participating in the gas and clean energy revolution in China, while providing strong returns to shareholders. GGZ will be our third commercial block, following our successes in GCZ and GSS.'