Sino Gas & Energy Announces Jump in Ordos Basin Gas Resources

Sino Gas & Energy Holdings has announced an increase in gas reserves in its Production Sharing Contracts (PSCs) in the Ordos Basin, China.

Total project 2P Reserves have increased 168 percent to 877 billion cubic feet (Bcf), up from the 327 Bcf assessed in March 2013.

Total project 2C Contingent Resources increased 10 percent, from 2.2 to 2.5 trillion cubic feet (Tcf), while total project P50 Prospective Resources increased by 64 percent, from 3.2 to 5.2 Tcf.

The increase was driven by step-out drilling that increased the area of contingent resources and the extensive seismic programs which almost doubled the percentage of acreage classified as prospective from approximately 22 percent to 39 percent of the total (1,158.3 square miles (3,000 square kilometers), the company said.

As a result 70 percent of the acreage has resources assigned, with the remaining under-explored 30 percent also having the potential for further upside.

Sino Gas’ share of the project's Expected Monetary Value (EMV), has increased by 51 percent, from $1.6 to $2.4 billion.

The evaluation was done by RISC Operations, an Australian based, internationally recognised independent petroleum advisory, evaluation and valuation group.

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