Sino Gas & Energy Receives Linxing Gas Sales Proceeds

Sino Gas & Energy Holdings on Thursday said it has received proceeds for gas sold from the Linxing PSC in Ordos Basin, China.

The joint venture company, Sino Gas & Energy Limited has received $6.6 million equivalent ($3.2 million net to Sino Gas) from its PSC partner, CUCBM, for gas sales from the Linxing PSC for the period from December 2014 through to late November 2015.

Proceeds for gas sold from late November 2015 to February 2016 are expected to be received before the end of March.

Linxing PSC gas sales proceeds represent about 85 percent of the total pilot program gas sales proceeds to the end of February 2016.

With the process to receive proceeds from gas sales confirmed and tested, the JV partners now intend to proceed with the work program to ramp up production at the Linxing Central Gathering Station to installed capacity of 17 million standard cubic feet per day (MMscf/d) throughout the year. This will include drilling and tying in additional wells, including the two horizontal wells drilled in 2015.

Discussions regarding the outstanding gas sale proceeds from the Sanjiaobei PSC are ongoing with our PSC Partner PetroChina CBM (PCCBM), the company said.

Sino Gas is the first Australian company to produce and sell natural gas from unconventional reservoirs in mainland China.