Sino Gas - Material Increase in Reserves and Resources
Sino Gas & Energy Holdings (ASX:SEH) has updated its year end Reserves and Resources estimates for the Ordos Basin Project in China. Sino Gas’ net mid-case discovered Resources increased 8% to 1,478 Bcf (246 mmboe1), comprised of 2P Reserves of 579 Bcf (+5% y/y) and unrisked 2C Contingent Resources of 899 Bcf (+10% y/y). Net Proved (1P) Reserves increased 7% to 385 Bcf (64 mmboe), now representing 66% of Proved plus Probable (2P) Reserves. Net 2C Contingent Resources and net P50 Prospective Resources increased 10% and 12% respectively signifying substantial upside beyond the 2P Reserves base.
Sino Gas & Energy Holdings Limited (ASX:SEH, Sino Gas, the Company) has announced that RISC Operations Pty Ltd (RISC), an Australian based, internationally certified independent petroleum advisory, evaluation and valuation group, has completed an assessment of the Reserves and Resources for Sino Gas’ Production Sharing Contracts (PSCs) in the Ordos Basin, China as at 31 December 2016.
Key Points
- 2016 Reserves and Resource assessment further confirms the high quality and world class scale of Sino Gas’ natural gas assets with material increases in all Reserves and Resources categories;
- Sino Gas’ net mid-case discovered Resources increased 8% to 1,478 Bcf (246 mmboe1), comprised of 2P Reserves of 579 Bcf (+5% y/y) and unrisked 2C Contingent Resources of 899 Bcf (+10% y/y);
- Net Proved (1P) Reserves increased 7% to 385 Bcf (64 mmboe), now representing 66% of Proved plus Probable (2P) Reserves
- Net 2C Contingent Resources and net P50 Prospective Resources increased 10% and 12% respectively signifying substantial upside beyond the 2P Reserves base
- Largest 1P and 2P Reserve base of our Australian listed peers, trading at significant Enterprise Value per Reserves discount to peers on both a 1P and 2P basis
A full copy of the announcement can be found here or can be found on the announcements page of the Sino Gas website at http://sinogasenergy.com/investors/announcements.
