AAG Energy Receives Preliminary ODP Approval for Mabi
BEIJING, Dec. 11, 2013 /PRNewswire/ — AAG Energy Limited (AAG), the leading
independent Coalbed Methane (CBM) company in China, announced today that the
Overall Development Plan (ODP) for its Mabi CBM Project in Shanxi Province,
obtained preliminary approval from the National Energy Administration (NEA) of
The commercial capacity of the first phase
is expected to reach about 35BCF per year, with future commercial production
expected to surpass 100BCF per year.
The Mabi CBM Project is a Sino-foreign cooperative commercial CBM project
jointly developed by 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 2TCF 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.
Panzhuang CBM block, another block
developed by AAG, achieved formal ODP approval in 2011 and is the first and only
Sino-foreign CBM Block in China to enter into commercial development. Panzhuang
gross CBM production this year is expected to exceed 5 BCF.
"The Mabi preliminary approval marks another important milestone for our
unconventional gas development in China and further demonstrates our continued
strong working relationship with our Chinese partners.
The recognition of the commercial
achievements in Mabi further demonstrates that AAG has the ability to
successfully repeat its commercial development process from Panzhuang," said
Steve Zou, Founder, Chairman, and CEO of AAG.
About AAG Energy Limited (AAG)
The leading independent CBM company in China, AAG Energy Limited (AAG) is
committed to leading growth in the activities of finding, developing and
producing unconventional assets in China.
Developed and operated by AAG, the
Panzhuang and Mabi Blocks are two of the most commercially advanced CBM blocks
Both Panzhuang and Mabi are
located in China's coal-rich Shanxi Province in the Qinshui Basin, the most
commercially advanced CBM basin in China.
AAG's proven process of tailoring
and applying suitable technologies to the local geology led AAG to achieve the
highest CBM flow rates ever recorded in China.
The proven ability to
commercialize CBM, along with a highly regarded management team has attracted
support from leading international and Chinese investors including Warburg
Pincus, Baring Private Equity Asia and Ping An.
For more information please visit www.aagenergy.com
SOURCE AAG Energy Limited