Core Viewpoint - Shouhua Gas is experiencing significant growth in natural gas production, driven by its strategic focus on unconventional gas resources, particularly coalbed methane, which is becoming a key resource for increasing natural gas output in China [1][2][5] Group 1: Production and Capacity - As of June 27, Shouhua Gas has completed its semi-annual production target for natural gas three days ahead of schedule, with expectations to exceed 900 million cubic meters in total production for 2025 [1] - The company aims for a daily production of 3.2 million cubic meters by the end of 2024, with annual production expected to increase by 35% year-on-year [2] - The coalbed methane geological reserves in the Shilou West Block amount to 88.741 billion cubic meters, providing a solid foundation for future growth [2] Group 2: Technological Advancements - Shouhua Gas has made significant progress in exploration and development due to increased R&D investment, with a 14.81% rise in the number of R&D personnel [3] - The company has developed a comprehensive technical system for coalbed methane and tight gas, enhancing extraction efficiency and reducing drilling cycles by approximately 9% year-on-year [3] Group 3: Cost Optimization - The company has achieved a 10%-20% reduction in contract prices for the 2025 cycle compared to the previous cycle through technological and management innovations [4] - The cost of constructing horizontal wells has decreased from 40 million to around 31 million, with a significant reduction in per-unit costs [4] Group 4: Future Outlook - Shouhua Gas is positioned to take advantage of its technological barriers and resource reserves, aiming to lead in the industry’s natural gas storage and production landscape in China [5]

Core Viewpoint - The Daji Gas Field, China's largest coalbed methane field, has achieved an annual production capacity of over 2.5 billion cubic meters, becoming a significant resource for the country's natural gas production growth [1][3]. Group 1: Production Capacity and Growth - The Daji Gas Field has a newly added annual production capacity of approximately 1 billion cubic meters from 37 newly drilled wells this year [3]. - The current average daily production of coalbed methane is 6.8 million cubic meters, representing a year-on-year increase of 50.1% [3]. Group 2: Geological and Technical Aspects - Coalbed methane is a type of unconventional natural gas resource that is either adsorbed or free in deep underground coal seams, typically buried deeper than 1,500 meters [3]. - The Daji Gas Field is China's first large-scale developed coalbed methane field, with an average burial depth of 2,130 meters and proven geological reserves of 300 billion cubic meters [3].