Shanxi Blue Flame acquires major coalbed methane exploration rights

Shanxi Blue Flame Holding announced today that its wholly-owned subsidiary, Shanxi Blue Flame Coalbed Methane Group Co., Ltd., successfully bid for and acquired the exploration right for the Fazhong block of the Qinshui basin in Shanxi province. The winning bid amounted to RMB 20,138.4万元. This acquisition covers an area of 297.8986 square kilometers and is for a five-year exploration period.

The Fazhong block is located in a national planned coalbed methane mining area, a key region for exploration and development by both national and provincial authorities. The company has received the "Notification of Transaction Completion" for the Fazhong block and is expected to sign the "Confirmation of Transaction" within five working days.

This acquisition aligns with the company's strategy to focus on its core coalbed methane business, enhancing its resource reserves and expanding its operational scale. Shanxi Blue Flame states that the funding for this acquisition comes from its own capital or self-raised funds and is not expected to have a significant adverse impact on the company's current financial condition or operating results.