Project Profile

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Value: Undisclosed
Location: southwestern Shanxi province, Qinhsui Basin, China
Reserves: 3P reserves of approximately 2 trillion cubic feet (Tcf)
Capacity: 1 bcm per year (Mabi Phase 1)
Production: 140,000 cubic metres (4Q 2016), 58.3 mcm (2017)
Start-up Year: -
Mabi started pilot production during the first half of 2010, prior to receiving preliminary Overall Development Plan (ODP) approval from the National Energy Administration in November 2013. The commercial capacity of the first phase is expected to reach about 35 billion cubic feet (bcf) per year, with future commercial production expected to surpass 100 bcf per year. 
The Mabi CBM Project is a Sino-foreign cooperative commercial CBM project jointly developed by China National Petroleum Corporation (CNPC) and AAG’s wholly-owned subsidiary Asian American Gas, Inc. (AAGI), with AAGI as the operator. The preliminary ODP approval allows AAGI to start commercial development preparation and begin the process of obtaining government approvals necessary for the full-scale commercial development. The Mabi CBM Block has audited net 3P reserves of approximately 2 trillion cubic feet (Tcf) and is only one of two CBM blocks that AAG has been exploring and developing in the Qinshui Basin in the Shanxi Province, China’s most commercially-advanced CBM basin. 
Pilot production from Mabi in 2016 centred on 3 pads in the licence’s north-east with 24 PDW wells and 2 SLH wells. The SLH wells were built to assess seam 3 and 15 respectively. Exploration is also underway to update the reserves across the Northern and Southern Mabi areas.
Mabi’s ramp-up continued during 2016, when daily pilot production climbed 124% from 1H2016 to 140,000 cubic metres per day during the fourth quarter of 2016. The quarterly figure represented a 267% climb year-on-year. By the end of 2016, 121 active wells were at different stages of pilot production. Two pilot wells were drilled in the quarter, and AAG said it would enhance its technical drilling knowledge of Mabi’s Seam 3 and Seam 15.
Operators:
AAG Energy Holdings Limited (AAG Energy): Operator with 50% interest
China National Petroleum Corporation (CNPC): 50% interest