AAG Energy Announces 4th Quarter 2016 Operation Updates

Jan 26, 2017 11:30 JST

Source: AAG Energy Holdings Limited

HONG KONG, Jan 26, 2017 - (ACN Newswire) - AAG Energy Holdings Limited (HKEX stock code: 2686) is pleased to announce its operation update for the 4th quarter of 2016.

AAG Energy CEO & President, Jing Li commented: "2016 was a challenging year for most upstream operators under the continued low oil & gas price environment. We are happy to have had another year of robust production increase from Panzhuang and significant progresses made on the Mabi pilot program and ODP I approval. With continued improvement in operations efficiency and cost control, AAG is well positioned to further expand our business and provide more clean energy to our customers and markets in China."

Key highlights:

- Q4 Gross production of 144 million cubic meters (MMCM), comprising 131 MMCM from our Panzhuang concession and 13 MMCM from the Mabi concession
- Panzhuang concession over produced annual design capacity of 500 MMCM, producing 506 MMCM in 2016
- Q4 Total average daily production of 1.57 million cubic meters (MMCMD): an increase of 14% from last year
- Q4 Mabi record gross production of 12.85 MMCM
- Q4 Mabi record daily production of 140 thousand cubic meters per day (MCMD)
- 17 wells drilled in Q4; 13 production for Panzhuang, 4 exploration for Mabi
- 5 wells put into production in Q4 for Panzhuang
- Q4 98% sales utilization rate for Panzhuang
- Q4 Capex of RMB123 MM
- Mabi ODP Phase I approval is on schedule and under CNPC final review
- Health, Environment, Safety (HSE) injury rate indicators were all 0 for Q4
- Drilling costs continue to fall, SLH well costs down 40% since 2015

(Operations update as of December, 31st 2016, 08:00 CST)

For details, please refer to the announcement: http://www.hkexnews.hk/listedco/listconews/SEHK/2017/0126/LTN20170126027.pdf and you can also find the document on the announcements page of our website: http://www.aagenergy.com/article/1065

Source: AAG Energy Holdings Limited
Sectors: Daily Finance