The project is reside in Southern Qinshui Basin of Shanxi Province in China, where the Daning mine property is located. Southern Qinshui Basin has been rated by experts from both domestic and abroad as the best-potentialed CBM reservoir in China.Commercial potential of CBM in Southern Qinshui basin has never been extended to its full capacity in the past 10 years of explorations and production tests. The low and erratic production of the vertical hydrau-fracing wells drilled there has almost extinguished any of the enthusiasm initiated by the good reservoir conditions.
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