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CO2 sequestration starts at ECBM Pilot Project in China

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VANCOUVER, BC — Petromin Resources Ltd. announced yesterday that China United Coalbed Methane Corp., Ltd. (CUCBM), has initiated well operations at the Deep Un-mineable Coal CO2 Sequestration and Enhanced Coalbed Methane (ECBM) Pilot Project in Shanxi Province, China.

Well SX-001 has begun de-watering in preparation for the injection of CO2 into the target coal seam(s). The current phase of operations will provide baseline data on water and coalbed methane (CBM) production from the target coal seams no. 3 (approximately 5 meters thick) and no. 15 (approximately 6.6 meters thick).

In addition, the Company reported that the Pilot Project operations area has been enlarged to 5.0 square kilometers, with discussions for, following the success of Phase One, a much larger area for Phase Two of the Pilot Project.

The Pilot Project is located on CUCBM's Shizhuang North block in the Qinshui Basin of Shanxi Province, China. The Qinshui Basin is one of the more prolific CBM producing regions in China and the coal seams are prospective for ECBM production.

The Pilot Project has the objectives of confirming the suitability of the coal seams for CO2 sequestration and long term storage while piloting the enhanced production of CBM from the coal seams in which the CO2 is stored. Coal is deemed to have long term storage potential for CO2 because CO2 will preferentially adhere to the coal cleat surface while displacing methane contained in the coal. The Pilot Project is an international cooperative venture between Petromin, Enviro Energy International Holdings Limited (Enviro-Energy) and CUCBM. The parties will jointly retain the intellectual property developed during the pilot campaign. CUCBM is supported financially in the venture by the China Ministry of Science and Technology.

On 18 November 2009, a top level CUCBM delegation attended Petromin's Vancouver offices and held a Joint Project Steering Committee (JPSC) meeting with representatives from Petromin, Enviro-Energy and the Alberta Research Council. CUCBM emphasized the importance and high priority that their Government is giving the Pilot Project as it directly relates to both their environmental and clean energy future planning.

Petromin and Enviro-Energy use the Alberta Research Council as their principal technical consultant on the Pilot Project. Recent public statements by the Chinese leadership include a promise to cut CO2 emissions per unit of gross domestic product by a "notable margin" by 2020 from the 2005 level.



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