Through a joint venture, the partners will deploy reservoir, production and development technologies to demonstrate profitable coal bed methane (CBM) development in fields located within the Shaanxi province, China.
According to estimates, China has CBM resource of nearly 40 trillion cubic meters (tcm), with recoverable reserves of about 10 tcm.
WellDog COO James Walker said: "Shaanxi has committed to producing 20 billion cubic meters of natural gas by the end of the 13th five-year plan.
"The dramatic increase is part of China's push to ease off of burning coal and switch to natural gas, which would substantially improve the average quality of life of Chinese residents."
SPIERCE said that the technologies from WellDog would contribute greatly to the efficient development of CBM and other unconventional oil and gas resources in China.
WellDog president and CEO John Pope said: "We believe we have the operational and technical know-how to make a dramatic improvement in Chinese CBM production.
"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."
WellDog said that the LOI complies with its aim to drive georesource innovation to improve sustainability.
Image: Officials from WellDog and SPIERCE during LOI signing ceremony. Photo: courtesy of PRNewsFoto/WellDog.
