The Ordos Basin is an emerging CBM play with a potentially enormous resource base, where in-place volumes are estimated at near 400 tcf. The basin extends over 370,000 square kilometres. Bounded by mountain ranges on three sides, the most prospective areas are located in the east of the basin. As in the nearby Qinshui Basin, small, specialised operators appear to be making the most progress in commercialising the play.
The Ordos Basin is at an earlier stage of development than the nearby Qinshui Basin, although both are thought to hold great potential for CBM production.
Operators have trialled a mix of deviated and horizontal well completions in different areas of the basin. We have assumed that full development of the play will largely utilise horizontal drilling.
Geology is complex and vary greatly from block to block. Operators have to identify the optimal well design for their acreage, which has limited the repeatability of development experience across blocks.