Enviro Energy seeks new coalbed methane reserves
[2008-12-23 17:04:27]
As international communities fear that global oil reserves will dry up in 30 years, energy companies are racing to tackle the energy dearth.
And Enviro Energy International Holdings is looking to increase its oil and natural gas production.
The company's chairman and chief executive officer, Kenny Chan, said that coalbed methane (CBM) provides sustainable energy, and his company is mining it.
"Although the technology is in the fledgling stage on the mainland, the market has huge room to explore with its estimated 105 billion cubic feet of natural gas reserves - as much as three times the US's," Chan said.
Using new technology, he said, oil and natural gas productivity can be improved by 70 percent, and carbon dioxide emissions will be cut.
"Given that traditional drilling approaches can only tap into about 10 percent of the reserves in an oil field, (the new technology) can improve the yield significantly," he said.
The company paired up with PetroChina to invest in an oilfield in Qian An, Jilin province. The joint project consists of oil reserves of approximately 21.67 million barrels and an expected primary recoverable reserve of 6.06 million barrels.
Chan said the company is considering extending its ties with PetroChina. "We're now in negotiations with Petromin Resources and PetroChina for a couple of oil fields and CBM projects."
The company earlier signed a CBM deal in Xinjiang with PetroChina that covers 655 sq km.
Chan is sure that the partnership with PetroChina will speed up his company's exposure to CBM areas.
Chan added that his company's fiscal position is strong, having about HK$180 million in cash available.
