Company moves forward on enhanced hydrocarbon recovery - CO(2) injection process underway at ECBM pilot project
Wednesday, 21 April 2010
TSX.V Symbol: PTR
Petromin Resources Ltd. ("Company") is pleased to announce that the process leading to injection of carbon dioxide ("CO(2)") into the target coal seams at the site of the Deep Un-mineable Coal CO(2) Sequestration and Enhanced Coalbed Methane ("ECBM") Production Project ("Project") in Shanxi, the People's Republic of China ("China") is scheduled to start this week.
Additionally, on March 10, 2010, the Company, China United Coalbed Methane Corp. Ltd. ("CUCBM"), and Enviro Energy International Holdings Limited entered into a supplemental agreement that formally (i) expanded the pilot test area to over 1152 acres (5 square kilometers) and, (ii) extended the term of their joint venture from 5 years to 5.5 years.
The CO(2) injection process which begins with establishing the CO(2) inventory at site, well monitoring and a short well workover is underway and follows a period of shut-in which was initiated during the week of 22 March 2010. The well produced water and coal-bed methane for several weeks leading up to the shut-in.
The Company and Enviro Energy contribute funding and specialized services to the Project as well as training to the Chinese party. A Company representative attended the well operations during the fist quarter to assist start-up procedures, evaluate equipment and set up monitoring procedures.
The Project, operated by CUCBM is located in the Shizhuang North area of Qinshui Basin of Shanxi Province which is one of the most prolific CBM producing areas in China. The expanded Project area provides sufficient land area to test the CO(2) storage capacity of coal seams as well as the effectiveness of CO(2) as a driver of ECBM production and the extended term provides sufficient time to complete planned activities.
The CO(2) injection is the first ever such activity in China to be undertaken under leadership of state-owned and private enterprises while being assisted by support and funding from the Chinese and Canadian governments. As announced by the Company on December 7 2009 the Project has received matching funding support from the Canadian government under the auspices of the Asia Pacific Partnership on Clean Development and Climate ("APP"), a seven-country cooperative effort to encourage clean energy developments in the region. The APP includes Canada, China, Australia, United States, India, Japan and Korea and the funding support clearly reflects the international significance of the Project. As an international collaboration that includes the Company from Canada, Enviro Energy from Hong Kong and CUCBM from China, the Project fully reflects the cooperative principles of the APP.
The Project has taken on added significance following the announcement by the central government of China that the country will make notable reductions in greenhouse gas emissions, including CO(2), in the foreseeable future. The Chinese government proposes, by 2020, to reduce carbon intensity - or the amount of CO(2) emitted per unit of economic output - by 40 to 45 percent compared with 2005 levels. CO(2) sequestration and storage in coal seams is expected to be an important element of Chinese and global emission reduction plans and coalbed methane production is being encouraged in many regions across China.
The Board considers the Company's investment in the Project to be a corporate initiative of strategic importance. Enhanced hydrocarbon production including the utilization of CO(2) and unconventional natural gas form important elements of the Group's business planning looking ahead.
About Petromin Resources Ltd.
Petromin is progressive international petroleum and natural gas exploration and Production Company listed Tier 1 on the TSX Venture Exchange. Petromin was ranked 24th of the Top 100 Fastest Growing Companies in BC by Business in Vancouver in 2009 based on a 704% revenue increase over the past 4 years. Petromin is a major shareholder in TWE and provides professional services under the terms of a management agreement with TWE.
By Order of the Board
PETROMIN RESOURCES LTD
A. Ross Gorrell
Co-Chairman and Chief Executive Officer