Huge natural gas find in Shaanxi

A deep coalbed methane field discovered in Shaanxi by CNOOC (0883) contains more than 110 billion cubic meters of proven natural gas reserves.

This is China's first deep coalbed methane field with reserves exceeding 100 billion cubic meters and is the oil and gas producer's second substantial onshore gas discovery.

The company said the discovery can be expected to bolster the expansion of China's unconventional oil and gas reserves and production.

The discovery well, designated SM2-33-CH1, is within the Shenfu coal seam gas field at Yulin. The company found 16.5 meters of coal seams at a depth of just over 2,000 meters.

During test production the well produced 19,000 cubic meters of gas per day.

And CNOOC has plans for over 100 wells at Shenfu.