Sino Gas, MIE to Develop CBM Projects in China

Sino Gas & Energy and MIE Holdings Corporation have inked a deal to develop the Sanjiaobei and Linxing coal-bed methane gas projects in China.

Under the terms of the transaction, MIE would progressively invest up to $90 million in Sino Gas, acquiring $10 million in existing shares before July 6. The combined investment would result in MIE holding a 51% interest in the subsidiary.

Sino Gas said that the $90-million investment would be sufficient to fund the Sanjiaobei and Linxing projects. It would now focus on bringing the Sanjiaobei and Linxing projects to maturation and would continue to explore and evaluate the remaining 60% unexplored acreage in its PSCs.

Sino Gas believed that the quality of the resources, which currently stood at a combined estimate of 3.7-trillion cubic feet, could be increased significantly, as only some 40% of the PSCs had been explored to date.