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COPYRIGHT 2005 Hart Publications, Inc.
Oil and Gas Investor: Describe the strategy that drives your company.
McElwrath: We are focused very narrowly, but on a project that is massive in potential. To be precise, we are intently focused on coalbed-methane development in China and have good reason for that intense focus because, through a series of fortunate events, we have managed to obtain production sharing contracts that cover over 1.3 million acres of coalbed-methane concessions in China. It is estimated that those projects contain somewhere between 9.2- and 12.4 trillion cubic feet of potentially recoverable coalbed-methane resource. Our biggest project comes from a million-plus-acre farm-out from ConocoPhillips in Shanxi Province, which was estimated by ConocoPhillips to contain between 13.1- and 19.6 trillion cubic feet of gas in place. To put this in perspective, the gas production of the entire U.S. for 2004 was approximately 22 trillion cubic feet.
OGI: What steps will the company take to develop the resource and begin production?
McElwrath: In China, there is good news and bad news when it comes to the coalbed-methane resource. The first piece of good news is that the Chinese coal seams are, in general, notoriously gassy in content; they have very high gas content. I say...
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