In 2013 Triple acquired an 80% profit interest in, Heilongjiang Aolong Energy Co. Ltd ("Aolong"), a co-operative joint venture established under the laws of the People’s Republic of China (“PRC”).
The other shareholder of Aolong as to 20% is Heilongjiang LongMei Coal Mining Group Joint-Stock Company Ltd ("LongMei"), which is one of the largest coal mining companies in the PRC.
TNP has drilled three wells in this area, one in 2013 and two more completed late 2015. The results of two of these wells indicated good gas readings. Currently TNP and the JV are assessing the future development potential of the gas in the Hegang Area, having regard to localised geological features and ongoing mining operations.
The JV agreement grants rights of refusal to TNP for up to three other coal bed methane areas in Heilongjiang. The most promising of these is the Jixi area to the south of Hegang where 5 wells have already been successfully tested for CBM production. TNP is currently assessing the possibility of exercising its rights over this area with a view to an early development.
TNP announced in October 2015 that it had entered into a Non-Binding Memorandum of Understanding ("MoU") to acquire an operating interest in a number of coal bed methane blocks located in the Ordos basin of Shanxi Provence in the Peoples Republic of China ("PRC").
TNP expects to formalise this acquisition in the near future.
The CBM blocks proposed to be acquired are considered well suited to the growth plans and overall strategy of Triple Energy. Specifically, they have the potential to generate near term production, a booked resource/reserves and hence cash flow and ample appraisal upside. These ingredients will in turn prepare the company for a possible dual-listing on the Hong Kong Stock Exchange, subject to all of the listing requirements being satisfied in due course.