BEIJING, December 19, 2011 /PRNewswire/ --
Asian American Gas, Inc. (AAGI) is very pleased to announce that its Overall Development Plan for the Panzhuang Coalbed Methane Project in Jincheng City, Shanxi Province has been officially approved by the National Development and Reform Commission (NDRC), making the Panzhuang project the first Sino-foreign cooperative commercial CBM project in China.
Steve Zou, President and CEO of Asian American Gas, Inc., commented that "The approval of the Panzhuang ODP is exciting news and a major milestone for Sino-foreign cooperative CBM projects." He then, on behalf of AAGI shareholders, management and all employees, expressed his heartfelt thanks to AAGI's Chinese partner, CUCBM, for its strong support and leadership in achieving this milestone. "I am very confident that the Panzhuang project will greatly enhance CBM commercialization in China and improve CBM technological development and management levels," added Steve Zou.
AAGI is aiming to turn the Panzhuang project into a model for the Chinese CBM industry. The company is committed to maintaining the highest standards of safety and responsibility, and to making a sustainable contribution to local economic and social development while delivering a superior rate of return for its shareholders.
Notes to Editors:
About Panzhuang CBM Concession
Panzhuang CBM concession, operated by AAGI's wholly owned subsidiary Sino-American Energy, Inc., is one of AAGI's major CBM concessions in the Qinshui Basin and covers 150 km. The proven reserve of the Panzhuang CBM concession is 30 billion m, and the current annual production capacity of the pilot wells is approximately 100 million m. Panzhuang CBM concession is a high potential CBM block that is ready for commercial development. Under CUCBM and AAGIs' management, 20 multi-lateral wells have been completed and are currently under trial production. The Panzhuang project's annual CBM production capacity is scheduled to reach 500 million m in 2014.The total investment during the development period will be USD 198 million.
About Asian American Gas, Inc.
Asian American Gas, Inc. (AAGI) is a fast-growing international organization backed by world-renowned energy companies and investment funds, including Warburg Pincus, Baring Private Equity Asia, and Evan Energy, etc. AAGI is primarily engaged in the exploration, development and production of coalbed methane (CBM) in China.
AAGI currently operates in two CBM concessions in the Shanxi Qinshui Basin: the Panzhuang concession and the Mabi concession. The proven reserve of the Panzhuang concession is 30 billion m, and the current annual production capacity of the pilot wells is approximately 100 million m. Panzhuang's annual CBM production capacity is scheduled to reach 500 million m in 2013. According to preliminary surveys, the Mabi concession holds a total gas in-place reserve of 200 billion m and has the potential to realize annual CBM production of 3-5 billion m.
SOURCE Asian American Gas, Inc.