China-focused CBM Explorer AAG Reports 16% Rise in 1H Output
China-focused coalbed methane explorer AAG Energy Holdings August 25 reported a 16% year on year growth in output for the six-month period that ended June 30.
The company's production in the first half of the year was 293mn metres3 , which was comprised of 266.7mn m3 of gross production from its Panzhuang-based wells, and 26mn m3 from its Mabi wells. The increased 1H output followed new wells being drilled in Panzhuang in 2016 and 2017 and better well design and operation from the Mabi wells, the company said.
AAG operates the Panzhuang concession in partnership with China United CBM while it operated the Mabi concession in partnership with CNPC.
Sales revenue increased by 16.7% year on year to yuan 225.6mn ($33.85mn) in the six-month period, while profit from operations increased by 17.9% to yuan 128.8mn. AAG Energy realised a higher average selling price of yuan 1.26/m3 in 1H 2017 compared with yuan 1.20/m3 a year earlier, due to increased demand for gas in the winter months, the company said.
AAG Energy completed drilling a total of 16 wells in 1H2017.
The full year gross production expectation for Panzhuang is 557mn m3, while for Mabi it is 57mn m3.
Shardul Sharma