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For Immediate Release Hong Kong, 15 April 2016 -Leading oil and gas explorer and developer Sino Oil and Gas Holdings Limited (the "Company", Hong Kong stock code: 702) today issued a voluntary announcement to the shareholders and the potential investors with regard to the Company's coalbed methane ("CBM"), crude oil and raw coal washing operations update for the first quarter of 2016 (hereinafter referred to as the "First Quarter of 2016" or the "Period"). Coalbed Methane Exploitation - Sanjiao Block in the Ordos Basin The first quarter of 2016 The first quarter of 2015 CBM production 14.77 million cubic meters 12.58 million cubic meters CBM sales 14.65 million cubic meters 12.13 million cubic meters CBM revenue HK$16.78 million HK$18.21 million Average gas sale-to-production rate 99.2% 96.4% In the sales structure: The CBM sales for the Period were composed of industrial piped CBM sales and residential piped CBM sales which accounted for 79.8% and 20.2% respectively. As such, same as first quarter in 2015, piped CBM sales accounted for 100% of the total CBM sales during the Period. The increase of CBM sales, on the one hand, was attributable to the increase in production for the Period; on the other hand, as from late November in 2015, the CBM sale price per cubic meter has decreased by approximately 20% comparing with that of the same period in 2015. Nevertheless, with reference to relevant notice issued by the Chinese Ministry of Finance in February 2016, the subsidy from central government for CBM production will be increased from RMB 0.2 per cubic meter to RMB 0.3 per cubic meter so as to boost the development of CBM industry. This state policy will have direct positive impact on the development of the Group's Sanjiao CBM project as well as the entire industry in the long run. By the end of the First Quarter of 2016, the Sanjiao CBM project of the Group has completed a total of 92 wells, including 44 multi-lateral horizontal wells, while the remaining 48 are vertical wells. Out of the aforesaid 92 wells, 68 wells are under dewatering stage, of which 59 wells have accessed to the gas collection pipeline network. Oilfields Located in Shaanxi Province - Liuluoyu, Yanjiawan and Jinzhuang
As the sale price of crude oil per tonne has decreased by more than 20% for the Period while compared to the same period in 2015, the revenue has dropped accordingly. Raw Coal Washing Project Located in Shanxi Province
The group completed the acquisition of the above project in mid-2015 and it officially started operations by the fourth quarter of 2015. For further enquiries, please contact:
Celia Li End of Press Release +++++ Document: http://n.eqs.com/c/fncls.ssp?u=OHNLQRQPHP Document title: Sino Oil and Gas (00702.HK) CBM Sales Volume YoY Increased By 20% in First Quarter 2016 Key word(s): Quarter Results
15/04/2016 Dissemination of a Press Release, transmitted by EQS TodayIR - a company of EQS Group AG. |
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