Situated in Jincheng, a city in the southern aera of the Qinshui Basin in Shanxi Province, and in partnership with China United CBM Limited, the Panzhuang concession was developed by Sino-American Energy Limited, a subsidiary of AAG Energy Holdings Limited. The Panzhuang concession is the most advanced CBM commercially developed concession with an area of141.8 k㎡ under PSC. In 2008, Panzhuang realized its first CBM sales, making Sino-American Energy Limited one of the first CBM developers to realize CBM commercialization.
The Panzhuang concession is the first Sino-foreign CBM cooperative project in China to have received overall development plan approval, with a designed annual production capacity of 500 million m³. On November 1st, 2016, the Panzhuang concession officially entered the production phase making it the first foreign cooperative CBM project to enter full-scale commercial development and production. In 2017, total annual production reached 571.6 mmcm with an 13% increase YoY（Year on Year）, ASP ( average selling price) reached 1.31 RMB/m³, increased 10% YoY. The 45 SLH wells were completed in just 16.9 days with an average drilling cost of RMB 2.9 million per SLH well. In 1H2018, Panzhuang gross production increased to 331.3 MMCM. Daily average gas production during 1H2018 was 1.83 MMCM per day.
