Sino Oil and Gas Reports Higher Second Quarter CBM Sales from China Gas Project

Sino Oil and Gas announced on Friday that 2014 second quarter coal bed methane (CBM) production from its Sanjiao gas project in China stood at 11.56 million cubic meters.

Out in the same quarter last year was approximately 11.75 million cubic meters.

CBM sales during the period was 10.88 million cubic meters compared with approximately 7.06 million cubic meters during the corresponding quarter in 2013, the company said.

The CBM sales for the quarter were composed of industrial piped CBM sales and residential piped CBM sales which accounted for 93.9% and 6.1% respectively. As such, piped CBM sales accounted for 100% of the total CBM sales during the period, Sino Oil and Gas said.

According to the company, by the end of the second quarter, the Sanjiao gas project had completed a total of 73 wells, including 40 multi-lateral horizontal wells, while the remaining 33 were vertical wells. Out of the aforesaid 73 wells, 59 wells under normal dewatering stage, of which 49 wells had accessed to the gas collection pipeline network.

Sanjiao CBM block is located in the north-eastern part of China between Shanxi and Shaanxi provinces, along the eastern fringe of the Ordos Basin.