Project Profile
Location: Southern Qinshui Basin, Shanxi Province, China
Reserves: 85.7 bcf (gross proven reserves)
Production: 566 mcm per year or 1.55 mcm per day (2016)
Area: 141.8 sq. km
Situated in Jincheng, a city within the southern Qinshui Basin and in Shanxi Province, the Panzhuang concession extends over an area of 141.8 square kilometres under the exploration and mining licenses. The operator is AAG Energy Limited (AAG), which received approval of the Panzhuang ODP from the NDRC on November 28, 2011 and, accordingly, entered into the development phase under the production sharing contract. The company anticipates ramping up to full-scale commercial production in Panzhuang in 2014. Panzhuang PSC partner is CUCBM. NSAI prepared a reserve report as of June 30, 2012 which estimates the proven reserves at 85.7 bcf (gross).
There are two major, laterally continuous coal seams in the Panzhuang concession that generally dip into the northwest where the north-south-striking basin axis is located and outcrop to the east of the boundary of the Panzhuang block. The two major coal seams in the Panzhuang concession are coal seam 3 in the Lower Permian Formation and coal seam 15 in the Upper Carboniferous Formation. Coal seam 3 has an average depth of 458 metres, an average thickness of 5.7 metres, a gas content saturation of 90%, and an average gas content of 15.8 cm³/g. Coal seam 15 has an average depth of 511 metres, an average thickness of 2.9 metres, a gas saturation of 90% and an average gas content of 19.3 cm³/g.
Operators:
AAG Energy Limited (AAG): Operator
China United Coalbed Methane Corporation
Contractor:
NSAI: Reserve report