China Daily reported the deal was the 21st contract China United Coalbed Methane had signed with a foreign company. The previous 20 deals were worth as much as US$90 million in total.
Exploration will cover 1,371 square kilometers – the area is believed to hold 240 billion cubic meters of CBM.
The deal states Asian American coal will carry the risks and expenditures during a five-year exploration period.
During development and production, both companies will share production in accordance with amounts they have invested, China Daily said.
