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 China. 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 in China. 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.
