Sino Gas update on Production and Prices
Sino Gas & Energy Holdings Limited (ASX: SEH, “Sino Gas” or the “Company”) announced a further increase in agreed pricing for gas sold from Sanjiaobei PSC and to provide an update on production from the Linxing and Sanjiaobei Central Gathering Stations (“CGS”).
The agreed natural gas price for gas sold from Sanjiaobei PSC has increased to RMB1.79/cubic meter (~US$7.30/mcf). The price increase represents an additional 7% from the 20% increase announced on 16 December 2016 as a result of PetroChina’s final winter natural gas price adjustment in the region. The new price is effective from November 20, 2016 and is expected to apply until end of the winter period (March 2017).
Gross production from the two facilities has increased to approximately 21 Million standard cubic feet per day (“MMscf/d”). Current production is as a result of drilling and tying-in new pilot wells, the restart of the Sanjiaobei CGS and commencement of production from the second Linxing compressor.
Sino Gas anticipates production facilities to operate within the range 20-25 MMscf/d as facilities and individual wells are optimised and sub-surface data gathered to assess individual well productivity, pressure declines and reservoir drainage.
Commenting on the further increase in agreed gas price and the significant ramp-up towards total installed capacity, Sino Gas Managing Director Mr Glenn Corrie said:
“The previously announced Sanjiaobei natural gas price has been adjusted in light of PetroChina’s final winter price in the region in which we operate. We see this price increase as a further sign of the strength of the natural gas market in China. I am pleased we have achieved this ramp up in production in a safe manner, overcoming the challenges of heavy rain delays during the third quarter and partner transition. We will continue to optimise the production. I would like to thank the team for their hard work and we look forward to advancing Overall Development Plans to deliver the full value of our Ordos Basin PSCs”.
Source/ More : Sino Gas
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