China Focused CBM Explorer Sino Gas & Energy Hold Talks with New JV Partner

Sino Gas & Energy Holdings Limited has held initial discussion with its new joint venture partner China New Energy Mining Limited (CNEML).

China New Energy Mining Limited last month bought entire stake of MIE Holdings in two coal bed methane (CBM) assets in China for $220 million. MIE will sell its subsidiary Asia Gas & Energy Ltd. which owns 51 percent equity in Sino Gas & Energy Ltd., which in turn has a 64.75 percent and 49 percent interest in the Linxing and Sanjiaobei production sharing contracts (PSCs) with China United Coal Bed Methane Corp. and China National Petroleum Corp., respectively.

Sino Gas & Energy Holdings Limited said that China New Energy Mining Limited has a clear vision of the significant potential of the Linxing and Sanjiaobei PSCs.

Sino Gas and CNEML have discussed the key aspects of working together to deliver a seamless transition and ensure that the 2016 work program remains on-track. In anticipation of deal completion expected in mid-2016, a joint team has been formed to agree plans and priorities to optimise field operations and drive towards production ramp-up and full field development, Sino Gas said.

China New Energy Mining Limited is a private company incorporated under the laws of Hong Kong with a focus on the exploration, development and production of oil and gas fields