AAG Secures $100M Loan for Development of Panzhuang CBM Concession
AAG Energy Limited (AAG), an independent Coalbed Methane (CBM) company in China, announced Tuesday that it completed a competitively priced syndicated $100 million reserve based loan with HSBC and Standard Chartered Bank for its development of the Panzhuang concession in Qinshui Basin in China's Shanxi Province. Panzhuang concession is China’s most commercially advanced CBM asset and is the first CBM concession to receive Overall Development Plan (ODP) approval from the National Development and Reform Commission (NDRC). 2013 Panzhuang gross production increased over 56 percent year over year to 5.45 billion cubic feet (Bcf).
Steve Zou, founder, chairman, and CEO of AAG commented “We are excited to see that our commercial achievements in Panzhuang are recognized by two leading international lenders. Securing this $100 million loan is a testament to our track record and the execution capabilities of our team”.
CBM is a fast growing energy sector in China that has attracted significant investments. The expanding track records of well performance data and growing commercial sales volumes sold through rapidly expanding infrastructure has positioned CBM to develop rapidly to service China’s fast growing natural gas demands. AAG Energy, domestically known as Asian American Gas is focused on leading the development of China’s CBM sector by utilizing a systematic technical approach to understand the local geology and apply tailor fitted technology. AAG’s proven technology has led AAG to achieve the highest CBM flow rates ever recorded in China.
Charley Huang, CFO commented “successfully closing this facility has set a valuable precedent for the financing of future CBM concessions and provides AAG with a strong foundation for growth as the company targets public and private capital markets in the future”.
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