21 Jan 2009 12:13
๏ปฟ
21ย January 2009
GREEN DRAGON GAS LTD.
("Green Dragon" or the "Company")
DAILY GAS PRODUCTION EXCEEDSย ONE MILLION CUBIC FEET
Green Dragon Gasย Ltdย (AIM:ย 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 blocksย in conjunction with its joint-venture partner, CUCBM.
|
BLOCK |
WELLS DRILLED 2008 |
TOTAL WELLS COMPLETEDย TO DATE |
WELLSย ONLINE/ย DE-WATERING |
CURRENT WELL DRILLINGย |
|
SHIZHUANGย SOUTH |
15 |
135 |
47 |
0 |
|
SHIZHUANGย NORTH |
3 |
9 |
5 |
0 |
|
QINYUAN |
8 |
14 |
10 |
3 |
|
FENGCHENG |
5 |
19 |
13 |
1 |
|
PANXIE EAST |
1 |
6 |
5 |
0 |
|
GUIZHOUย |
3 |
10 |
3 |
0 |
|
TOTAL WELLS |
35 |
193 |
83 |
4 |
Shizhuang South (GSS), the Company's most advancedย gas productionย block,ย continues to increase as the de-watering wells convert to gas. Theย production at the Zayoun station has exceeded 33,000ย cubicย meters or 1,165,890 CFย per day and continues to rise as the water table is reduced and casing pressures in the wellsย areย reduced through production.
Theย Surface-to-In-Seam (SIS) wells drilled on the GSS block haveย proved successfulย within months ofย commencingย production. A total of 2,880 metersย wasย drilled in the coal seam utilizingย Mitchell Energyย proprietary technology, with whomย the Companyย has aย joint-venture. The first well GSS008ย turned toย gas production in excess of 8,000ย cubicย meters or 282,000ย CFย perย day. The water table was reduced to 55 meters above the coal seam within 15 days ofย commencingย production.ย The second well GSS031 is successfully de-watering with a demonstrative consistent reduction in the water table toย 66 metersย above the coal seam at present,ย alongsideย an increase in the casing head pressures. Gas production is expected once the water table is at the coal seam which is forecastedย for theย month end.
Randeep Grewal, Chairman & CEO commented:
"The SIS wellsย represent significant progress forย the Company. The successย ofย our GSS wellsย givesย us the confidence toย pursue and expandย our development plans for the GSSย blockย providing for significantly more horizontal wells than originally planned. The SIS wells enableย greaterย gas drainageย at aย fasterย rate, with less surface footprint and related infrastructure.ย Although it is stillย early on the production curve, our decade long experience with coal seamsย allows usย to appreciate the significant benefitย ofย the SIS technology.ย With the application of the same proprietary technology,ย weย areย repeatingย inย Chinaย theย Australianย Queenslandย success."
The information contained in this announcement has been reviewed byย Elton Dong, Vice General Manager Production, Bachelor of Scienceย at Xi'an Petroleum Institute
For further informationย on the Company and its activities, pleaseย refer to the website atย www.greendragongas.comย orย contact:
Randeep S. Grewal / Betty Cheung,ย
Green Dragon Gas +852 3710 0168
Dr Azhic Basirov /ย David Jones,ย
Nomad & Broker, Smith &Williamson +44 20 7131 4000
Tim Redfern,ย
Broker, Evolution Securities +44ย 20 7071 4300
Tim Thompson / Christian Goodbody,ย
Investor Relations, Buchanan +44 20 7466 5000
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