Sino Gas & Energy Ups Reserves at China CBM Blocks

Sino Gas & Energy has announced a 227% increase in 2P reserves at its Production Sharing Contracts (PSCs) in the Ordos Basin, China to one trillion cubic feet (tcf), from 327 billion cubic feet (bcf) assessed in March last year.

Sino's share of this 1 tcf stands at 291 bcf.

Total project 2C Contingent Resources increased 32%, from 2.2 to 2.9 tcf, while total project P50 Prospective Resources increased by 25%, from 3.2 to 4.0 tcf1, while total project P50 Prospective Resources increased by 25%, from 3.2 to 4.0 tcf.

“The increase during the year was driven by step-out drilling that increased the area of contingent resources and the seismic programs which almost doubled the percentage of acreage classified as prospective. The extensive drilling program also supported a further expansion of the discovered area, which increased 44% during the year,” the company said.

Economic valuation of Sino Gas’ share of the project's Expected Monetary Value (EMV) increased by 45% in 2013, from $1.6 to $2.3 billion.

The assessment was carried out by Australia based RISC Operations Pty Ltd.

Sino Gas holds a 49% interest in Sino Gas & Energy through the strategic partnership with MIE Holdings Corporation. Sino Gas & Energy is the operator of the Linxing and Sanjiaobei Production Sharing Contracts (PSCs) in the Ordos Basin, Shanxi province.

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