CSG

Molopo shifts Chinese assets into new CSM company

THE Chinese Government has given Molopo Australia the all clear to transfer its rights in the Liu...

Molopo shifts Chinese assets into new CSM company

Fortune will be owned 40% by Molopo and 60% by its new JV partner Fortune Oil, which will fund the first $US2.5 million ($A3.3 million) of work at the Liulin project.

Most of the funding will pay for production testing to prove-up gas reserves and identify the most appropriate stimulation technique that could be applied to the estimated 700-800 billion cubic feet (740-845 petajoules) of CSM resource at Liulin.

In addition to this approval, China’s Ministry of Commerce has also extended the PSC exploration period for a further two years.

Fortune earlier told the London Stock Exchange that the Liulin block was one of the best geologically-proven CSM blocks in China.

Analysis from coal holes and exploration wells has indicated an in-place gas resource of approximately 800 billion cubic feet, Fortune said.

“With a successful appraisal program, this resource may be converted to recoverable reserves in the order of 400 billion cubic feet in an area of approximately 200 square kilometres.

“The gas recovered to date is over 95% methane, located in three main coal seams at a depth of 400 to 700 metres. The coal parameters such as permeability, gas content and seam thickness are favourable for coalbed methane drilling.”

While China has one of the world’s largest reserves of CSM, the industry is still in its infancy and output is only 3.5 trillion cubic feet per year.

TOPICS:

A growing series of reports, each focused on a key discussion point for the energy sector, brought to you by the Energy News Bulletin Intelligence team.

A growing series of reports, each focused on a key discussion point for the energy sector, brought to you by the Energy News Bulletin Intelligence team.

editions

ENB CCS Report 2024

ENB’s CCS Report 2024 finds that CCS could be the much-needed magic bullet for Australia’s decarbonisation drive

editions

ENB Cost Report 2023

ENB’s latest Cost Report findings provide optimism as investments in oil and gas, as well as new energy rise.

editions

ENB Future of Energy Report 2023

ENB’s inaugural Future of Energy Report details the industry outlook on the medium-to-long-term future for the sector in the Asia Pacific region.

editions

ENB Cost Report 2021

This industry-wide report aims to understand current cost levels across the energy industry