Sino Oil and Gas (00702.HK) CBM Sales Volume YoY Increased By 20% in First Quarter 2016

EQS-News / 15/04/2016 / 18:31 UTC+8

For Immediate Release
Sino Oil and Gas Holdings Limited
CBM Sales Volume YoY Increased By 20% in First Quarter 2016

Hong Kong, 15 April 2016 -Leading oil and gas explorer and developer Sino
Oil and Gas Holdings Limited (the "Company", Hong Kong stock code: 702)
today issued a voluntary announcement to the shareholders and the potential
investors with regard to the Company's coalbed methane ("CBM"), crude oil
and raw coal washing operations update for the first quarter of 2016
(hereinafter referred to as the "First Quarter of 2016" or the "Period").

Coalbed Methane Exploitation - Sanjiao Block in the Ordos Basin

         The first quarter of 2016 The first quarter of 2015
CBM production 14.77 million cubic meters 12.58 million cubic meters
CBM sales 14.65 million cubic meters 12.13 million cubic meters
CBM revenue HK$16.78 million          HK$18.21 million
Average gas sale-to-production rate 99.2% 96.4%

In the sales structure: The CBM sales for the Period were composed of
industrial piped CBM sales and residential piped CBM sales which accounted
for 79.8% and 20.2% respectively. As such, same as first quarter in 2015,
piped CBM sales accounted for 100% of the total CBM sales during the
Period. The increase of CBM sales, on the one hand, was attributable to the
increase in production for the Period; on the other hand, as from late
November in 2015, the CBM sale price per cubic meter has decreased by
approximately 20% comparing with that of the same period in 2015.
Nevertheless, with reference to relevant notice issued by the Chinese
Ministry of Finance in February 2016, the subsidy from central government
for CBM production will be increased from RMB 0.2 per cubic meter to RMB
0.3 per cubic meter so as to boost the development of CBM industry. This
state policy will have direct positive impact on the development of the
Group's Sanjiao CBM project as well as the entire industry in the long run.

By the end of the First Quarter of 2016, the Sanjiao CBM project of the
Group has completed a total of 92 wells, including 44 multi-lateral
horizontal wells, while the remaining 48 are vertical wells. Out of the
aforesaid 92 wells, 68 wells are under dewatering stage, of which 59 wells
have accessed to the gas collection pipeline network.

Oilfields Located in Shaanxi Province - Liuluoyu, Yanjiawan and Jinzhuang 

         The first quarter of 2016 The first quarter of 2015
Crude oil sales 809 tonnes                  830 tonnes
Revenue          HK$1.81 million          HK$2.66 million

As the sale price of crude oil per tonne has decreased by more than 20% for
the Period while compared to the same period in 2015, the revenue has
dropped accordingly.

Raw Coal Washing Project Located in Shanxi Province  

               The first quarter of 2016 The first quarter of 2015
Sale of refined coal   25,233 tonnes         Not applicable 
Revenue                HK$12.42 million         Not applicable

The group completed the acquisition of the above project in mid-2015 and it
officially started operations by the fourth quarter of 2015.

For further enquiries, please contact: 
Celia Li
Corporate Communications Department
Phone：(852) 2802 3623
Email：celiali@sino-oilgas.hk 


End of Press Release

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Document: http://n.eqs.com/c/fncls.ssp?u=OHNLQRQPHP
Document title: Sino Oil and Gas (00702.HK) CBM Sales Volume YoY Increased
By 20% in First Quarter 2016

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Key word(s): Quarter Results

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