Green Dragon Reserves Increase Highlights Chinese CBM Potential

By applying new technology, Green Dragon has managed to increase its Chinese CBM reserves ahead of a massive planned production expansion. Although this bodes well for the company and for China's CBM potential, greater international investment is needed if the country is to achieve its ambitious production targets.

China-focused CBM producer Green Dragon Gas has increased its proven gas reserves estimates by 24%. The revision follows an independent study commissioned by Green Dragon following the application of new drilling technology at its licenses. The reserves uplift is a huge boost for the company, which is aiming for an eighteen-fold increase in production by end-2012, albeit from a very small base.

The estimates reaffirm China's immense CBM potential, which has so far remained largely untapped because of a failure to bring in the investment and technology needed to scale up output.