G3 Exploration Ltd (LON:G3E) highlighted its progress with exploration and development activities at the Baotian-Qingshan (or GGZ) block, in China’s Guizhou Province.
The company, in a statement regarding the period to the end of December, noted that it drilled 45 coal bed methane (CBM) production wells at GGZ, and in doing so it de-risked 30bn cubic feet of gas which were valued at US$300mln.
Fifteen wells were put on production and seven have so far seen initial commercial gas rates, it added.
Work operation are ongoing at GGZ, as there’s now a catalogue of wells that will be stimulated and brought into production during the second half of the year. It added that the anticipated commerciality of the GGZ Block will create additional shareholder value, as the asset’s development continues.
"The GGZ Block has progressed from exploration into development and is an exciting proposition as it contains multiple prospective coal seams,” said Randeep Grewal, chairman and chief executive.
“The block is located in Southern China, which has historically been short of gas production.”
Grewal added: "We see the GGZ Block offering considerable additional value to our shareholders.
“As a result, we will be progressing with the CRR and ODP during the course of the year. Realising the potential of the GGZ Block is a priority objective for the company in the medium term and one that I believe will achieve our dual aims of actively participating in the gas and clean energy revolution in China, while providing strong returns to shareholders.”