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ACN Business

AAG Energy's Operations Remain Strong in 2018Q2

  • Written by ACN Newswire
AAG Energy's Operations Remain Strong in 2018Q2
HONG KONG, July 11, 2018 - (ACN Newswire) - AAG Energy Holdings Limited (HKEX stock code: 2686) is pleased to announce its operation update for the 2nd quarter of 2018, i.e. three months ended June 30, 2018 ("2018Q2").

Key Quarterly Highlights:

- AAG continues to outperform the HSE target with zero injury in 2018Q2.

- AAG's gross average daily production for 2018Q2 achieved 2.17 MMCM per day ("MMCMD") (Panzhuang 1.87 MMCMD, Mabi 0.31 MMCMD), a 6.4% increase compared to the gross average daily production of 2.04 MMCMD in 2018Q1 (Panzhuang 1.79 MMCMD, 4.5% increase; Mabi 0.25 MMCMD, 24.0% increase), and a 31.5% increase compared to the gross average daily production of 1.65 MMCMD in 2017Q2 (Panzhuang 1.50 MMCMD, 24.7% increase; Mabi 0.15 MMCMD, 106.7% increase).

- Panzhuang drilled 16 SLH wells and 5 PDW wells in 2018Q2, and 24 wells were put into production during the quarter.

- Mabi Gas Average Well-head Sales Price ("ASP") increased by 39.5% to 1.59 RMB per cubic meter ("rmb/m3") in 2018Q2 (inclusive of retrospective adjustment for 2018Q1) from 1.14 rmb/m3 in 2018Q1, and a 40.7% increase over Mabi's 2017Q2 ASP of 1.13 rmb/m3. This increase resulted from the finalization of discussion with PetroChina and approval by the Joint Management Committee of Mabi in 2018Q2 on pipeline sales price for 2018 and the upward pipeline gas price adjustment with effect from January 2018.

- Panzhuang ASP was 1.50 rmb/m3 in 2018Q2, a slight decrease of 4.5% (despite the end of the peak demand winter period in March 2018 and the start of the summer period in April 2018) over Panzhuang's 2018Q1 ASP 1.57 rmb/m3, but a 20.0% increase over Panzhuang's 2017Q2 ASP of 1.25 rmb/m3.

- Regarding Mabi Overall Development Plan Phase I ("ODP I") progress, AAG and PetroChina jointly decided to go through the requirements and procedures for approval process to obtain ODP approval ("NDRC Approval Process") given that Mabi has been waiting for the requirements and procedures for the filing process for ODP approval ("NDRC Filing Process") since early 2017 when the NDRC announced that the NDRC Approval Process will be changed to the NDRC Filing Process. In June 2018, PetroChina submitted Mabi ODP I to NDRC to commence the NDRC Approval Process. As a result of this change, we expect to obtain the NDRC approval for Mabi ODP I by end of 2018 and be able to start the scaled development of ODP I in 2019.

For details, please refer to the announcement:http://www.hkexnews.hk/listedco/listconews/SEHK/2018/0711/LTN20180711852.pdf[1]

and you can also find the document on the announcements page of our website: http://www.aagenergy.com/en-US/file/files/2018-07-11/20292838453.pdf[2]

About AAG Energy Holdings Limited (HKEX stock code: 2686)AAG Energy Holdings Limited is an international energy company and the leader in China's CBM exploration and development sector. It focuses on developing and optimizing the value of unconventional gas resources to supply clean energy to the Chinese economy. AAG Energy's key operating assets, Panzhuang and Mabi concessions, are located in the Southwestern part of Qinshui Basin, which boasts the largest proved CBM geological reserves of any basin in China. AAG Energy's Panzhuang concession in partnership with China United Coalbed Methane Corporation Ltd., is the most commercially advanced Sino-foreign CBM asset in China and the first Sino-foreign CBM cooperative project to have entered full-scale commercial development and production. The Project has a designed annual production capacity of 500 million m3. AAG Energy's Mabi CBM Project in partnership with PetroChina received preliminary ODP Phase I approval from NDRC in November 2013. The designed production capacity of Mabi Phase I is 1 billion m3 per year. With proven ability to commercialize CBM and a highly-respected management team, the Group has attracted support from leading international and Chinese investors. For further details, please visit www.aagenergy.com[3].

Topic: Press release summarySectors: Daily Finance, Energy[4][5] http://www.acnnewswire.com From the Asia Corporate News Network

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