AAG Reaches Production Milestone at its CBM Concessions in Shanxi, China
AAG Energy Limited (AAG), the leading independent Coalbed Methane (CBM) company in China, announced Tuesday that on June 8 the combined gross production from its Panzhuang and Mabi concessions in Shanxi Province surpassed 35.315 million cubic feet per day (MMcf/d) or 1 million cubic meters per day.
Carl Lakey, chief operating officer commented “The achievement of this significant milestone represents a true team accomplishment and foreshadows more to come. We are on track for another great year, and expect this positive trend to continue.”
Production at the Panzhuang concession has grown on average 50 percent year over year since 2011 when Panzhuang became the first Sino-foreign cooperative CBM project to obtain Overall Development Plan (ODP) approval from the National Development and Reform Commission (NDRC). Due to the swift production increases and rising natural gas price environment in China, AAG has increased revenue ~140 percent since 2011 reaching $22.36 million by the end of 2013. Keeping pace with the rapid development in Panzhuang, in 2013 the Mabi concession obtained preliminary ODP approval from the National Energy Administration (NEA). Mabi has a first phase commercial capacity target of 35 billion cubic feet (Bcf) per year, with future commercial production expected to surpass 100 Bcf per year.
“This milestone marker of 1 million cubic meters per day reached June 8 represents a 200 percent production increase from a year ago levels. This speaks to the quality of our Panzhuang and Mabi assets and also our ability to utilize fit for purpose technology to rapidly commercialize CBM assets in an environmentally friendly and safe manner,” said Steve Zou, founder, chairman, and CEO.
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