liulin cbm block

Many have probably read this, but posted it for further reinforcement. that is reinforcement into people's minds.

The third paragraph might tickle readers mind.


China has one of the world's largest reserves of Coal Bed Methane (CBM). This methane gas is found in coal seams and is an alternative source of natural gas to petroleum reservoirs. Development of CBM is critical for China, not only to meet the nation's growing energy demands but also for safety and environmental reasons: this methane gas is the principal cause of explosions in coal mines and methane emissions contribute to global warming.

Until recently the development of CBM reserves in China was hindered by the absence of suitable local markets. However, with local gas demand and gas prices increasing, development of CBM is now an attractive proposition. The government actively encourages foreign participation in CBM blocks via Production Sharing Contracts (PSCs) with China United Coalbed Methane Corporation (CUCBM). The PSC structure enables foreign investors to bring capital and the best technologies for the extraction of CBM.

Fortune Oil has acquired control of the PSC foreign contractor rights for the Liulin CBM block in Shanxi Province; a minority interest has been retained by Molopo Australia Limited, an experienced CBM developer. The Liulin block is acknowledged to be one of the best CBM blocks in China in terms of known concentration of gas. The gas in place is estimated to be 23 billion cubic metres.

Fortune Oil is now in the process of developing the Liulin block and seeking similar high quality opportunities, particularly in Shanxi Province which has the largest CBM reserves in China. Fortune Oil already operates pipelines and city gas companies in the province and we are uniquely positioned to integrate upstream CBM developments with our gas distribution network.

http://www.fortune-il.com/en_us/natural_gas_cbm.htm