21 Jan 2009 12:13
ο»Ώ
21Β January 2009
GREEN DRAGON GAS LTD.
("Green Dragon" or the "Company")
DAILY GAS PRODUCTION EXCEEDSΒ ONE MILLION CUBIC FEET
Green Dragon GasΒ LtdΒ (AIM:Β GDG), the Chinese coal bed methane ("CBM") business, today announces an update on its continued success in developing its large coal bed methane resource across its six blocksΒ in conjunction with its joint-venture partner, CUCBM.
|
BLOCK |
WELLS DRILLED 2008 |
TOTAL WELLS COMPLETEDΒ TO DATE |
WELLSΒ ONLINE/Β DE-WATERING |
CURRENT WELL DRILLINGΒ |
|
SHIZHUANGΒ SOUTH |
15 |
135 |
47 |
0 |
|
SHIZHUANGΒ NORTH |
3 |
9 |
5 |
0 |
|
QINYUAN |
8 |
14 |
10 |
3 |
|
FENGCHENG |
5 |
19 |
13 |
1 |
|
PANXIE EAST |
1 |
6 |
5 |
0 |
|
GUIZHOUΒ |
3 |
10 |
3 |
0 |
|
TOTAL WELLS |
35 |
193 |
83 |
4 |
Shizhuang South (GSS), the Company's most advancedΒ gas productionΒ block,Β continues to increase as the de-watering wells convert to gas. TheΒ production at the Zayoun station has exceeded 33,000Β cubicΒ meters or 1,165,890 CFΒ per day and continues to rise as the water table is reduced and casing pressures in the wellsΒ areΒ reduced through production.
TheΒ Surface-to-In-Seam (SIS) wells drilled on the GSS block haveΒ proved successfulΒ within months ofΒ commencingΒ production. A total of 2,880 metersΒ wasΒ drilled in the coal seam utilizingΒ Mitchell EnergyΒ proprietary technology, with whomΒ the CompanyΒ has aΒ joint-venture. The first well GSS008Β turned toΒ gas production in excess of 8,000Β cubicΒ meters or 282,000Β CFΒ perΒ day. The water table was reduced to 55 meters above the coal seam within 15 days ofΒ commencingΒ production.Β The second well GSS031 is successfully de-watering with a demonstrative consistent reduction in the water table toΒ 66 metersΒ above the coal seam at present,Β alongsideΒ an increase in the casing head pressures. Gas production is expected once the water table is at the coal seam which is forecastedΒ for theΒ month end.
Randeep Grewal, Chairman & CEO commented:
"The SIS wellsΒ represent significant progress forΒ the Company. The successΒ ofΒ our GSS wellsΒ givesΒ us the confidence toΒ pursue and expandΒ our development plans for the GSSΒ blockΒ providing for significantly more horizontal wells than originally planned. The SIS wells enableΒ greaterΒ gas drainageΒ at aΒ fasterΒ rate, with less surface footprint and related infrastructure.Β Although it is stillΒ early on the production curve, our decade long experience with coal seamsΒ allows usΒ to appreciate the significant benefitΒ ofΒ the SIS technology.Β With the application of the same proprietary technology,Β weΒ areΒ repeatingΒ inΒ ChinaΒ theΒ AustralianΒ QueenslandΒ success."
The information contained in this announcement has been reviewed byΒ Elton Dong, Vice General Manager Production, Bachelor of ScienceΒ at Xi'an Petroleum Institute
For further informationΒ on the Company and its activities, pleaseΒ refer to the website atΒ www.greendragongas.comΒ orΒ contact:
Randeep S. Grewal / Betty Cheung,Β
Green Dragon Gas +852 3710 0168
Dr Azhic Basirov /Β David Jones,Β
Nomad & Broker, Smith &Williamson +44 20 7131 4000
Tim Redfern,Β
Broker, Evolution Securities +44Β 20 7071 4300
Tim Thompson / Christian Goodbody,Β
Investor Relations, Buchanan +44 20 7466 5000
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