Core Viewpoint - The company has made significant breakthroughs in the exploration and development of deep coalbed methane, which has become a new highlight for natural gas production increase in China in 2023 [1] Company Summary - The company's subsidiary, Zhonghai Wobang, is extracting natural gas primarily from deep coalbed methane and tight sandstone gas at depths of approximately 2300-2500 meters [1] - The geological reserves of deep coalbed methane that have been filed amount to 88.7 billion cubic meters [1]

Core Viewpoint - Shanxi Province has achieved a record high unconventional natural gas production of 8.94 billion cubic meters in the first half of this year, marking a year-on-year increase of 6.6% [1] Group 1: Unconventional Natural Gas Production - The total production of unconventional natural gas in Shanxi reached 8.94 billion cubic meters, which is a historical high for the same period [1] - Unconventional natural gas includes shale gas, tight sandstone gas, and coalbed methane, which differ significantly from conventional gas in terms of underground storage and accumulation [1] Group 2: Resource Potential and Development Strategy - Shanxi's total predicted resource volume for unconventional natural gas is approximately 20 trillion cubic meters, accounting for about 8% of the national total [1] - The province has implemented a "three gases co-production" pilot project to enhance resource development efficiency and reduce extraction costs [1] Group 3: Industrialization and Investment Landscape - Shanxi has established two major industrialization bases for unconventional natural gas in the southern Qinshui Basin and the eastern edge of the Ordos Basin [1] - The investment market is characterized by a diversified structure, primarily led by state-owned enterprises such as PetroChina and Sinopec, with broad participation from other entities [1] Group 4: Utilization and Distribution - To accelerate the consumption and utilization of unconventional natural gas, Shanxi has launched significant projects in urban and rural gas promotion and industrial fuel substitution [1] - Unconventional natural gas has become a major energy source for Shanxi and is being exported to regions such as Beijing-Tianjin-Hebei and Henan after meeting local consumption needs [1]