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

Copyright © 2018 ACN Newswire. All rights reserved. A division of Asia Corporate News Network.

Read more http://www.acnnewswire.com/press-release/english/44753/

Business Daily Media Business Reports

Di Jones real estate recognises high achievers

Di Jones celebrated its outstanding performers on Saturday (24 February 2018) evening at the Di Jones Real Estate Annual Awards.                               The bla...

Helen Hull - avatar Helen Hull

Eclipse Travel Expands Operations to New Zealand

Eclipse Travel, specialists in key adventure destinations such as Antarctica, the Arctic, Africa and Latin America, have announced today their expansion of operations to ...

Yvonne Kong - avatar Yvonne Kong

How medical professionals can benefit from an overall wealth management solution

As a health care professional, you have made it your life's work to focus on the care and health of the general public. While this kind of work can be extremely rewarding...

News Feature Team - avatar News Feature Team

Why Pinterest Should Be Part of Your Marketing Strategy

Pinterest is a growing social media platform that can deliver significant traffic to your website and new followers to your brand. With it’s steady growth and outrageous ...

Greg Nunan - avatar Greg Nunan

The top reasons why gyms fail

Steve Grant is a Business Coach and Founder of GymHub.com.au   Every month thousands of new trainers walk out of their 6-month course with the qualifications needed ...

Steve Grant - avatar Steve Grant

WHITE LABEL NOBA’s Winter 2016 season: Earth + Country

Taking cues from the warm winter colours of tobacco and caramel, and combining them with the strength of navy and the embracing lightness of whites and creams; and then...

Kath Rose - avatar Kath Rose

Former Etihad boss brings substantial event insight to PMY Group Board

Paul Sergeant PMY Group, the architects of the digital insurgency occurring at major venues across Australia and New Zealand, are delighted to welcome 35 year even...

Annie Konieczny - avatar Annie Konieczny

More training for coffee making than property sales: REINSW

Sydney 9 May 2016. An overhaul of education and training standards for the real estate profession must take place to help prevent illegal activities, according to the Rea...

Helen Hull - avatar Helen Hull