Green Dragon Gas (LON:GDG) has reported a production boost on the wells its operates in China thanks to new compression equipment.
The China-based unconventional gas group said sales from its GSS field rose at their peak by 18% compared to the end of 2015 to 6mln cubic feet per day.
Total sales volumes rose by 62% over this period a year ago and by 43% over the second half of 2015.
Green Dragon said its efforts in the first six months had been to increase recoveries by lowering wellhead gas pressure through the addition new compression equipment.
Randeep Grewal, chairman, said the focus on compression and production infrastructure would continue through the end of 2016 and into 2017.
“Our final challenge on our large GSS project is increasing gas sales by reducing casing pressure at the well bore on the currently drilled well stock where production capacity is significantly higher than the current gas sales.
“ I am satisfied with the first well head screw compressor installed on well GSS188, which has resulted in the 45% increase in its gas sales.
“As the proof of concept has been successful, we can now focus on repeating the same technological improvement on the rest of the well stock.”
Green Dragon is in partnership with a number of Chinese state-owned energy groups and has interests in six gas blocks in China.
Total wells in production during the period were 708 (666) most of which were in GSS (621) and GCZ (87).
Exploration is underway in one of the other blocks, GGZ.
Downstream gas sales amounted to 1.07bcf, 42% up on the second half of 2015.