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The China Daily reported that under the 30-year contract, Gladstone will fund all expenditure during the initial exploration period in the Hubei Province. If a commercial discovery is made CUCBM has options of acquiring a stake in the reserve and both companies will jointly invest and fund the areas.
CUCBM has undertaken extensive foreign partnerships over the past seven years and has invested $US80 million in foreign investment and co-operative projects by 2002.
The company said it was optimistic in local demand for coalbed methane. It also said it would utilise the natural gas pipeline currently under construction to supply to a larger market.
