Sino Gas & Energy (ASX: SEH) has booked a major increase in Proved And Probable Reserves to 327 billion cubic feet of gas at its Linxing East and Sanjiaobei production sharing contracts in the Ordos Basin, China.
The upgrade is based on 12 wells drilled in 2012 and 270 kilometres of seismic. The company’s share of the 2P Reserves is 93Bcf.
Independent petroleum advisory RISC, which completed the Reserves and Resources assessment, also increased total unrisked mid-case reserves & resources by 56% to 5.7 trillion cubic feet of gas with Sino’s share standing at 1.6Tcf.
Sino Gas’ share of project NPV in developing the 2P Reserves and mid-case Contingent & Prospective resources has increased 66% to US$1.86 billion.
This is due to the larger resource base, refinements to the company’s development models and strengthening gas price forecasts in China.
Sino Gas plans to continue development of the two coal seam gas PSCs as the economics of the domestic natural gas market in China continue to suggest attractive returns while existing pipeline infrastructure provides low cost access to markets.
The company’s fully funded 2013 drilling program will see teams deployed to test over 20 zones. Up to 10 rigs will be operating to drill up to 25 wells by the end of the third quarter 2013.
Sino has a 31.7% interest in Linxing East and 24% in Sanjiaobei.
The company had $7.5 million in cash as of 31 December 2012.
*Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.* Reported by Proactive Investors 2 hours ago.
The upgrade is based on 12 wells drilled in 2012 and 270 kilometres of seismic. The company’s share of the 2P Reserves is 93Bcf.
Independent petroleum advisory RISC, which completed the Reserves and Resources assessment, also increased total unrisked mid-case reserves & resources by 56% to 5.7 trillion cubic feet of gas with Sino’s share standing at 1.6Tcf.
Sino Gas’ share of project NPV in developing the 2P Reserves and mid-case Contingent & Prospective resources has increased 66% to US$1.86 billion.
This is due to the larger resource base, refinements to the company’s development models and strengthening gas price forecasts in China.
Sino Gas plans to continue development of the two coal seam gas PSCs as the economics of the domestic natural gas market in China continue to suggest attractive returns while existing pipeline infrastructure provides low cost access to markets.
The company’s fully funded 2013 drilling program will see teams deployed to test over 20 zones. Up to 10 rigs will be operating to drill up to 25 wells by the end of the third quarter 2013.
Sino has a 31.7% interest in Linxing East and 24% in Sanjiaobei.
The company had $7.5 million in cash as of 31 December 2012.
*Proactive Investors Australia is the market leader in producing news, articles and research reports on ASX “Small and Mid-cap” stocks with distribution in Australia, UK, North America and Hong Kong / China.* Reported by Proactive Investors 2 hours ago.