LARAMIE, Wyo., Nov. 11, 2016 /PRNewswire/ -- WellDog announced today that is has signed a Letter of Intent to form a joint venture with the Shaanxi Provincial Institute of Energy Resources and Chemical Engineering (SPIERCE). The joint venture will deploy reservoir, production and development technologies to demonstrate profitable coal bed methane (CBM) development in fields located within the Shaanxi province, one of China's most prolific energy resource regions.
"The introduction of WellDog technologies will contribute greatly to the efficient development of CBM and other unconventional oil and gas resources in China," stated SPIERCE Director Dr. Zhou Lifa. China's CBM resource is estimated at nearly 40 trillion cubic meters (tcm), with recoverable reserves of about 10 tcm. Over the last few decades, China has dramatically increased investment in CBM technologies, and each of the country's five-year plans has increased CBM production targets, but the results to date have failed to meet those goals. "We believe we have the operational and technical know-how to make a dramatic improvement in Chinese CBM production," said John Pope, Ph.D., president and CEO of WellDog. "We started in 1999 at the very infancy of CBM and have become one of the major global players in delivering successful CBM technical services to basins around the world. Bringing WellDog's know-how and technologies to China will enable the Chinese producers to maximize value from their assets and hopefully meet their production targets in the near future." The joint venture meets WellDog's strategic goal of driving georesource innovation to improve sustainability.