Jiangxi Fengcheng Coalbed Methane  Exploration Project

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      China United Coalbed Methane Co., Ltd.(China United CBM) signed a contract with the US SABA Petroleum Co. in June 1999 to explore coalbed methane resources in Jiangxi Province, the contract period will be three years. In accordance with the contract, the two companies will carry out coalbed methane exploration in a block in Fengcheng coal field. The block covers an area of 1540.54km². Fengcheng coal field is 40km away from Nanchang, the capital of Jiangxi Province. It is estimated that coalbed methane resources in the area are about 37.1 billion m³.

      All the expenditure incurred during the threeª²year contract period will be born by the US SABA Co. The total expenses will be about 4.6 million US, and a t least 10 coalbed methane wells will be drilled. Fengcheng coal field has been identified as one with high gas content, good coal seam permeability and middle buried depth, etc. Its resources characteristics are suitable for a large scale of development.

      The contract is the sixth of its kind signed between China United CBM and foreign companies after the China United CBM was established in 1996.

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