|Panzhuang's ASP and Production Volume Continue to Rise;|
Pilot Production at Mabi Further Expands in Preparation for Commercial Development
HONG KONG, Apr 16, 2018 - (ACN Newswire) - AAG Energy Holdings Limited (HKEX stock code: 2686) is pleased to announce that its operations for the three months ended 31 March 2018 continued their strong performance in the first quarter of 2018.
Dr. Stephen Zou, Chairman and Executive Director of AAG Energy, said, "In the first quarter of this year, AAG Energy sustained the strong momentum of 2017 as its business and operations remained sound. A remarkably consistent growth in the average selling price and production volume was recorded at Panzhuang. As the leading independent coalbed methane ("CBM") producer in China with high productivity and a sound financial condition, AAG is expected to prosper in line with the rising demand in the natural gas market of China. We are fully prepared for further expansion of production at Panzhuang and commercial development at Mabi."
Key Quarterly Highlights:
- HSE continues to outperform the target with zero injury in 2018Q1
- Panzhuang Gas Average Sales Price ("ASP") increased to 1.57 RMB per cubic meter ("rmb/m3") (a 20% increase over Panzhuang's 2017 ASP of 1.31 rmb/m3 and a 24% increase over Panzhuang's 2017Q1 ASP of 1.26 rmb/m3)
- AAG's gross daily production for 2018Q1 achieved 2.04 MMCM per day ("MMCMD") (Panzhuang 1.79 MMCMD, Mabi 0.25 MMCMD), an 18% increase compared to the average daily production of 1.72 MMCMD in 2017 (Panzhuang 1.57 MMCMD, 14% increase; Mabi 0.16 MMCMD, 54% increase) or a 29% increase compared to the average daily production of 1.58 MMCMD in 2017Q1 (Panzhuang 1.45 MMCMD, 24% increase; Mabi 0.14 MMCMD, 80% increase)
- Panzhuang drilled 13 SLH wells and 1 PDW well in 2018Q1, and 5 wells were put into production during the quarter
- 24 PDW wells in Mabi completed fracture work and altogether 56 wells were put into pilot production in 2018Q1
For details, please refer to the announcement:
and you can also find the document on the announcements page of our website:
About AAG Energy Holdings Limited (HKEX stock code: 2686)
AAG Energy Holdings Limited is an international energy company and the leader in China's CBM exploration and development sector. It focuses on developing and optimizing the value of unconventional gas resources to supply clean energy to the Chinese economy. AAG Energy's key operating assets, Panzhuang and Mabi concessions, are located in the Southwestern part of Qinshui Basin, which boasts the largest proved CBM geological reserves of any basin in China. AAG Energy's Panzhuang concession in partnership with China United Coalbed Methane Corporation Ltd., is the most commercially advanced Sino-foreign CBM asset in China and the first Sino-foreign CBM cooperative project to have entered full-scale commercial development and production. The Project has a designed annual production capacity of 500 million m3. AAG Energy's Mabi CBM Project in partnership with PetroChina received preliminary ODP Phase I approval from NDRC in November 2013. The designed production capacity of Mabi Phase I is 1 billion m3 per year. With proven ability to commercialize CBM and a highly-respected management team, the Group has attracted support from leading international and Chinese investors including Warburg Pincus, Baring Private Equity Asia, Chinastone and Ping An. For further details, please visit www.aagenergy.com.
Apr 16, 2018 21:58 HKT/SGT
Topic: Press release summary
Sectors: Daily Finance, Energy
From the Asia Corporate News Network
Copyright © 2019 ACN Newswire. All rights reserved. A division of Asia Corporate News Network.