In the North-West of China, near the capital of Xinjiang, drilling has begun in what is estimated to be a 100 billion cu m of CBM reserves, Interfax China reported.

A Xinjiang Coal Field Geological Bureau official told Interfax the well was to be drilled to a depth of 850 metres and is predicted to have a thickest coal layer of 64 metres and an aggregate coal layer depth of over 100 metres.

The official told Interfax preliminary tests showed the well's gas concentration medium levels were 7-8%, but the permeability was much better compared to other CBM wells in China.

Daily output from the well was expected to reach 50,000 cu m, higher than any other well in China.