8th Oct 2013 10:40
LONDON (Alliance News) - Green Dragon Gas Limited Tuesday said that it has been informed that a number of wells on its blocks were previously drilled by other Chinese gas companies.
The coal-bed methane gas producer in China said that following the company being re-issued with licences throughout China, it understands that major coal-bed methane players in the country have drilled wells on five of its six gas blocks.
The company said that China National Offshore Oil, CNPC, PetroChina and China United Coalbed Methane Corporation drilled 1,500 sites, with 1,300 of these being in the company's Shizhuang South site.
Coal-bed methane gas is extracted from coal beds and has been a key source of the recent energy boom in the US, it is often considered the sister process to shale gas fracking.
China has begun to step up development of the source and Beijing plans to double the share of natural gas in its energy mix by 2015 and reduce coal's role in a drive to ease pollution and slow greenhouse gas emissions.
The company now plans to test the sites before developing a production strategy for the area.
Green Dragon gas shares were up 4.4% to 245.25 pence Tuesday.
By Tom McIvor; [email protected]; @TomMcIvor1
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