Petromin Resources Coordinates First Ever Multi-Well Pilot CO2 Injection-Enhanced Coal Bed Methane Project in China
Monday, 16 July 2007
VANCOUVER, BRITISH COLUMBIA--(Marketwire - July 16, 2007) - Petromin Resources Ltd. (TSX VENTURE:PTR) (the "Company") and China United Coal Bed Methane Co. Ltd. (CUCBM) in collaboration with the Alberta Research Council (ARC) is pleased to announce plans to design and implement a five year multi-well pilot CO2 injection - enhanced coal bed methane (ECBM) production and geological storage project in China. The objective of this project is to demonstrate that CO2 will enhance the production of coal bed methane from the deep un-mineable coal seams. This project is the continuation of a single well micro-pilot test in Qinshui, Shanxi Province established between the Chinese and Canadian governments completed earlier this year in collaboration with the Alberta Research Council (ARC). The Petromin / CUCBM multi-well pilot project will provide further valuable technical information that could lead to the commercialization of CO2-ECBM in China.
Since 2000, China has embarked on a program to rapidly develop its coal bed methane (CBM) industry. CBM resources are now estimated at 30 - 35,000 billion cubic meters (900 - 1,050 trillion cubic feet), which are approximately three times the known conventional gas reserves in the United States. This potential for exploration and development has inevitably attracted international attention and has led to several new contracts with international partners. CUCBM aims to produce a staggering 10 billion cubic meters of gas annually by the year 2010.
It is significant to note that this pilot project will be a milestone project for the clean development of China's deep CBM reserves. This project will be a key step towards reducing C02 emissions (and therefore global warming) while enhancing energy supply. CO2 geological storage is viewed as one of the most promising mechanisms to store large quantities of captured C02 emissions. As outlined in the Intergovernmental Panel on Climate Change (IPCC) Guide Book, this technology is looked upon as a major C02 mitigation method. CUCBM and Petromin feel that enough data and information can be obtained to evaluate commercial expansion of this type of project in coal fields in other parts of China. In other words, when proven feasible, the same type of pilot test can be implemented in other coal-rich regions of China.
In the proposed project plan, CUCBM will be the operator of the laboratory and field operations while Petromin and its associated partners will provide technical guidance, expertise and assistance in designing the pilot test. Petromin will contribute a minimum of CDN $500,000.00 towards project design work, data analysis and numerical simulation of the test results. Economic benefits from this project will be shared by CUCBM and Petromin which will be outlined in a final agreement.
CUCBM has now submitted the project plan to the Ministry of Science and Technology (MOST) of the Peoples Republic of China for a Specialized Project Funding of International Technology Cooperation. This program is subject to approval by the Chinese Government. Once the program has been approved, a more detailed agreement between Petromin and CUCBM will be negotiated and further processed.
On Behalf of Petromin Resources Ltd.
Kenny W. Chan, Co-Chairman and Chief Executive Officer
For more information, please contact
Petromin Resources Ltd.
Kenny W. Chan
Co-Chairman and Chief Executive Officer
(604) 682-8683 (FAX)