NDRC has approved a project code for the overall development plan (ODP) on the GCZ block, allowing to further develop the acreage.
Green Dragon holds 47% participating interest in the GCZ block, while the China National Petroleum owns the remaining 53% stake in the block.
The GCZ block includes contract area of 67km², of which ODP covers an area of 33 km with proved reserves of around 275 Bcf.
Since 2010, the block has been in commercial production and is having coal formations at average depths ranging from 300m to 600m.
To date, 114 wells were drilled on the acreage. The current plan includes the drilling of an additional 147 production wells by the end of 2018 targeting both coal seam #3 and coal seam #15.
GCZ is expected to have gross production capacity of about 6.36 Bcf per year. Its development cost will be around $53.80m between 2017 and 2018.
CNPC will invest $28.51m based on its 53% participating interest, while GCZ will invest $25.28m as per its 47% participating stake in the block.
The firms combinedly operate the block through a joint management team based in Jincheng of Shanxi.
In July, Green Dragon secured project code approval for the ODP on the Greka Shizhuang South Zaoyuan portion of the main block (GSS), which will allow to drill an additional 42 vertical wells and 47 LiFaBriC wells by 2020.
Green Dragon Gas founder and chairman Randeep Grewal said: “The project ccode clears the last of the hurdles ahead of implementation of the ODP programme.
“The close cooperation between CNPC and the Company is well demonstrated by the continued timely progress of the GCZ ODP as we progress into the active development stage of the GCZ block.”
