The gross daily coalbed methane (CBM) production from the Panzhuang concession exceeded 1.4 MMcm/d (50 MMcf/d) on Dec. 24, 2014, AAG Energy Ltd. said in a press release. The average gross daily CBM production rate for the 49 horizontal wells currently in service in Panzhuang surpassed the rate of 28 Mcm/d (1 MMcf/d) per well on Dec. 24, 2014. These 49 horizontal wells have been in production from between one year and eight years and have an average of 3.1 years in service as of Dec. 24, 2014.

The Panzhuang concession is the most developed CBM concession in China and remains the only Sino-foreign CBM production-sharing contract (PSC) to have obtained overall development plan (ODP) approval from the National Development and Reform Commission to enter full-scale commercial development. This continued ramp-up in production will likely allow Panzhuang to reach its ODP-designed commercial capacity of 49.6 MMcm (17.5 Bcf) in 2015, marking another significant milestone for CBM development in China.