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    China-Focused G3E Sees 2017 Output Fall

Summary

Chinese coalbed methane producer G3 Exploration said gross production in 2017 from its fields was 10% lower, but net equity output was only 3% lower.

by: Shardul Sharma

Posted in:

Natural Gas & LNG News, Asia/Oceania, Corporate, Exploration & Production, CBM, News By Country, China

China-Focused G3E Sees 2017 Output Fall

London-listed coalbed methane (CBM) producer G3 Exploration said January 30 that gross production for the full year 2017 in fields in which it is involved was 10.09bn ft3 (285.8mn m3), down by just over 10% year on year due to adjustments made in partner CNOOC's volume measurement methodology, as well as a decline in the Chengzhuang block's output. G3E net output however was only down by 3%.

The Shizhuang South block (GSS block), operated by G3E subsidiary Green Dragon Gas, saw a 10% increase in gross production to 4.47bn ft3 for the year 2017, compared to 4.08bn ft3 in 2016.

The GSS Block, operated by Chinese state producer CNOOC, produced 2.63bn ft3 gross in 2017, compared with 3.56bn ft3 in 2016.

Production at Chengzhuang Block, operated by another Chinese state producer CNPC, was 2.99bn ft3 gross in 2017 compared with 3.58bn ft3 in 2016

G3E total net equity gas sales in 2017 for the GSS operated wells and GCZ CNPC operated wells was 3.31bn ft3, down by 3% compared with 3.41bn ft3 during the same period in 2016. That 2017 figure included 1.94bn ft3 (up 3% from 2016) from the Green Dragon Gas block, 0.94bn ft3 (up 36%) from the CNOOC block, and 1.37bn ft3 (down 10%) from the CNPC block.

This year, G3E plans monetisation of production assets, Chengzhuang and Shizhuang South blocks, through a Hong Kong listing, it said.