The estimation and economic assessment of the proved reserves of coal bed methane in Chengzhuang block in Jincheng

In order to demonstrate the reserve scale and economic benefit of coal bed methane(CBM) in Chengzhuang in Jincheng, the proved reserves of this block is estimated, and on the basis of a preliminary CBM development plan an economic assessment program was established by Excel according to the regulation of economic assessment for oil and gas reserves (SY/T 5838-93).The financial assessment on the reserves was carried out and analysis on uncertainty factors and sensitivity for the assessment result were made.The result shows that the CBM proved reserves in Chengzhuang block are 66.36×10⁸ m³, is a medium gas field with shallow-medium depth, low productivity and medium resource abundance.In addition, the development plan employs the reserves of 21.19×10⁸ m³, economic recoverable reserves of 15.75×10⁸ m³ and residual reserves of 5.44×10⁸ m³.The predicted development economic indexes of the Chengzhuang block are better, the financial internal rate of return is 22.2%, higher than the base earning rate of the natural gas industry, the breakeven point also is lower, and dynamic investment payback period is less than 8 years.Through the preliminary economic analysis, it is considered that the surface CBM development in the Chengzhuang block is economically feasible.