Damon Evans, SINGAPORE: China-focused unconventional explorer Sino Gas and Energy is set to benefit from the country’s latest coal-bed methane (CBM) initiatives, announcing a large increase in its resource base.
The Australian-listed firm has just seen the net present value for its stakes in the Sanjiaobei and Linxing CBM projects double to $2.3 billion. The upgrade, based on findings by advisor RISC, and triggered following exploration and testing last year, provided a best estimate (2C) contingent resource uplift of 79%, to 1.9 trillion cubic feet (cf) of gas. Its mid-case gas-in-place reserves estimate jumped by 21%, to 11.6 trillion cf.
And the reserves upgrade should help grab the attention of potential farm-in partners. The firm says it is still looking for a partner as it seeks to explore funding options that would not dilute shareholders’ interests.
Sino Gas, a pure-play outfit, has been operating in China...