Sino Gas Exceeds Nameplate Capacity in Q1
Australia-listed China-focused Sino Gas and Energy saw production above nameplate capacity in Q1 2018 and received an in-principle overall development plan (ODP) approval for its Sanjiaobei project, the company said April 20.
The company’s production averaged roughly 25mn feet3/day during the quarter, with March production averaging a record 26mn ft3/d, which sees it on track to meet its 2018 production guidance of a gross average rate of 22-27mn ft3/d, it said.
“With the recent in-principle approval of the first Linxing and Sanjiaobei ODPs, we continue to expect both ODP approvals in the first half of the year, as we prepare to ramp up production,” Sino managing director Glenn Corrie said.
Sino is the operator of the Chinese Linxing and Sanjiaobei production sharing contracts (PSC) in the Ordos Basin, China’s largest gas producing basin. The company’s current interest in the Linxing PSC with CNOOC subsidiary CUCBM is 70% and 49% of the Sanjiaobei PSC held with PetrolChina subsidiary PCCBM.
RBC Capital Markets analyst Ben Wilson said Sino is one of the most compelling, deeply discounted, big resource plays in RBC’s coverage universe, with the company benefiting from a combination of surging Chinese gas consumption and strong in-field performance. Sino’s share price on the Australian Stock Exchange was A$0.165 ($0.127) on April 20. “The key next steps that we are looking for are the finalisation of the first two ODP approvals at Linxing and Sanjiaobei,” Wilson said.