Sino Gas & Energy - First offshore remittance of gas sales proceeds
Sino Gas & Energy (ASX:SEH) has announced that its Chinese JV company has remitted funds offshore to Hong Kong for the first time. The remittance process to an offshore account is an important step in the full field development of the Ordos Basin Project. The company intends to hold funds in Hong Kong for project expenditure as required.
Sino Gas & Energy Holdings Limited (ASX: SEH, "Sino Gas" or the "Company") is pleased to announce that gas sales proceeds received by the Joint Venture company, Sino Gas Energy Limited (the "Joint Venture" or "SGE") have been remitted offshore China for the first time.
After finalising the necessary approvals, approximately US$1 million equivalent has been remitted to SGE’s bank account based in Hong Kong from where the funds are freely transferable.
It is Sino Gas' intention for the funds to be held in US Dollars in the Joint Venture’s Hong Kong bank account until needed to fund the ongoing work program.
Commenting on the first offshore remittance of gas sales proceeds, Sino Gas Managing Director Mr Glenn Corrie said: "Through our pilot program, we continue to derisk our Ordos Basin gas development project. With the remittance of funds offshore now demonstrated, we have completed the value chain for gas sold from the Linxing PSC, another major milestone for the monetisation of our world class assets."