We asked the company's vice president of exploration, Dr. David Marchioni about China's view on CBM as part of the energy mix away Froggies Favourites from coal. He told us, "The central government is pushing hard for CBM exploration and mine degasification, which will yield CBM. They have announced a new formal policy promoting CBM and starting studies for new gas pipelines." Has CBM registered on the radar screen yet? "CUCBM themselves is actively exploring," Marchioni said. "And CUCBM has production at present, but at fairly low volumes." Pacific Asia China Energy (PACE) may become an important test case, with its massive 970 kilometer square concession in south-central China's Guizhou province, in which the company would earn 60 percent by funding the exploration and pilot program. Would this help China's energy mix? "What would have impact is if PACE or any other players could produce CBM at high volumes and that 'it works' in a big way," Marchioni explained. "The technological learning from this and the news of success would encourage others."
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