Sino Gas & Energy has reached an agreement to raise AU$ 53 million to progress its forward programme of seismic, drilling and development on its coal seam gas production sharing contracts in the Ordos Basin, China.
The funds will be raised through a two tranche placement of 265 million new shares prices at AU$ 0.20 per share to institutional and sophisticated investors.
CEO Robert Bearden commented: “Sino Gas is delighted with the strong demand and support shown for the placement, from both new and existing institutional and sophisticated investors. Sino Gas is in an exciting phase of development of its unconventional gas assets in China’s Ordos Basin and is very focused on commercialising the assets and increasing shareholder value”.
China United Coalbed Methane Corp signed a supplementary gas agreement with Sino Gas in October this year that will allow earlier pilot production from the project by converting gas into compressed natural gas for transport by road to a major distribution facility. The agreement also facilitates long-term testing of selected wells, allowing important reservoir information to be obtained and reducing the need for excessive flaring.
Edited from various sources by Katie Woodward
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