For personal use only

For personal use only
Q4
QUARTERLY ACTIVITIES REPORT
WORK PROGRAM

First pilot gas sales achieved from both PSCs through
Sanjiaobei central gathering station. December production
averaged 4.1 MMscf/d, with the second compressor expected to
be commissioned early 2015.
2014 - 2015 PRIORITIES
Q4 2014

Chinese Reserve Reports (CRRs) submitted to Chinese partners
for review on Sanjiaobei and Linxing (West).


Results of successful 2014 work program (including 36 wells
drilled and 40 tested) to be included in updated Reserves &
Resources assessment due to be completed in Q1 2015.


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
Linxing central gathering station on-track for commissioning
mid-2015. Laying of gathering pipelines to tie-in TB-1H area
wells and third-party spur line is approaching completion.

Second horizontal well successfully tested at a rate of 3.7MMscf/
day, with further positive testing results received from
development wells on Linxing (West) up to 2.1 MMscf/day.

Prospectivity in south/west of the Linxing (East) increased
significantly with exploration well LXDG-03.
FINANCIAL & CORPORATE

31 December cash balance of US$34.1 million (US$10 million of
$50 million Macquarie debt facility drawn down).

US$20.3 million paid Q4 in relation to PSC expenditure.

Proportion of institutional shareholders increased to 50.6%.
Commenting on 2014, Sino Gas’ Managing Director Glenn Corrie
said: "It has been a tremendously successful year for Sino Gas, with
first pipeline gas from our pilot program, negotiating a 30% increase
in our gas price, identifying gas pay zones in all 36 wells drilled,
successfully testing two horizontal wells and securing our first debt
facility. Moving into 2015, we are looking forward to ramping up
production, further expanding of our capacity and working towards
key Chinese approvals. We are extremely fortunate to be situated in
the Ordos Basin, enabling us to produce at a low cost while
Government policies promote the development of local gas supply.
China is widely expected to maintain robust gas pricing in support of
recently announced initiatives and we look forward to developing the
potential of the projects and helping to meet the growing gas
demand.”
www.sinogasenergy.com
Q1 2015
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Q2 2015

Q3/Q4 2015

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ASX:SEH
For personal use only
WORK PROGRAM
Health, Safety and the Environment
Pilot Program
www.sinogasenergy.com
ASX:SEH
Linxing (West) - Sino Gas 31.7%1
Shanxi Province, People’s Republic of China
For personal use only
Sanjiaobei PSC - Sino Gas 24%1
Shanxi Province, People’s Republic of China
Linxing PSC (East) - Sino Gas 31.7%1
Shanxi Province, People’s Republic of China
www.sinogasenergy.com
1
Refer to page 6 for additional disclosure on Sino Gas’ Production Sharing Contracts.
3
FINANCIAL
Management
Financial Position
For personal use only
CORPORATE
Project Funding
Investor Relations and Marketing
Project Revenue
Share Register
Options Lapsed
Sino Gas Share Price Performance (ASX:SEH)
www.sinogasenergy.com
4
CHINA GAS INDUSTRY UPDATE
For personal use only
Development Strategy Action Plan
China Energy Policy Developments

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



SUPPLEMENTARY INFORMATION
Historical testing results by zone (2006—2014)
Zone
Upper Zone
Average
Thickness
(m)
Well Tests
Average Test Average Flow Rate
Length
(Mscf/day)
(Days)
Max Flow Rate
(Mscf/day)
9
4.6
13
796
2,901
Mid-Upper Zone
21
7.4
16
353
969
Middle Zone
13
6.4
25
241
708
Mid-Lower Zone
7
5.4
23
518
2,542
Lower Zone
4
5.5
19
621
1,663
16
21.0
23
731
2,569
2
N/A
2
7,442
9,775
Comingled
Horizontal Wells
(Middle Zone)
www.sinogasenergy.com
5
For personal use only
ABOUT SINO GAS & ENERGY HOLDINGS LIMITED
www.sinogasenergy.com
6
RESERVES AND RESOURCES
For personal use only
Sino Gas’ Attributable Net Reserves & Resources are summarised below:
Sino Gas’ share of the project's success case Net Present Value (“NPV”) and risk weighted EMV
are summarised below:
Resources Statement & Disclaimer
Competent Persons Statement
About RISC
www.sinogasenergy.com
7