Read this article & understand why!!!
Whether it be the shaley coals (shale gas) which is only 750 meters deep and covers the entire property or the gigantic 40 meters wide coalbed methane rich seams intermingled throughout, the Liuhuanggou project has it all.
And the topper is it has major pipeline infrastructure not near the property, but " ON the property "
The East-West transnational gas pipeline (from a glance it looks to be a 48" diameter" pipeline which is pretty much the biggest) with unconventional gas being given priority access, that will take whatever the city of Urumqi , "15 or 20 km away" does not want, to much higher reward markets as far as Beijing & Singapore.
My take is that we have hit the jackpot and why I continue to accumulate.
To me it's a no brainer that this play will be developed and with the help of major IOC JV partner & our PSC partner, PetroChina too. it's no longer a matter of if anymore.
Commercial production will begin in 2013....watch & see!!
Now all this is Jmho and I strongly suggest anyone looking at this play not take my opinion for gospel & do their own due diligence but I will just mention that back in 2009 when shale gas was first discovered in the Junngar Basin by Enviro & Petromin, a person could scan the Internet for weeks and find no articles or info on shale gas in China, but just look at the enormous caches of info you can pull off the Internet now about the topic, and I have picked the cream of most of it and posted it on the "Petromin Resources Group" (which is open to the public for anyone to join and use) that I started for a due diligence library for tire kickers to visit & decide for themselves.
just click on my name and then click on my groups to get access.
Good Luck to all of us