Coalbed methane (CBM) has boosted the fortunes of Sino Oil and Gas Holdings Ltd, which has announced a return to profit after a year of loss on the back of its CBM operations.
Analysts said that the change from red to black is mainly attributable to an increase in revenue generated from Sino’s CBM operation, which comprises the sale of CBM gas, as well as the related regular government subsidy the company receives, by approximately 110% compared with HK$18,300,000 of the corresponding period in 2013.
Sino Oil and Gas Holdings Chairman Dr Dai Xiaobing said: "Upon the phased completion of infrastructure facilities for the Sanjiao project, as well as the expansion of the processing plant and pipelines, CBM sales have increased substantially, pointing to promising potential for exploitation in the Sanjiao block."
Sino has a key focus on oil, CBM and conventional natural gas – and has looked to develop its operations into some of the leading oil and gas fields in Greater China. The Group currently operates oil and gas fields in Shaanxi and a CBM project in Sanjiao Block in Shanxi, China.
Edited from various sources by Sam Dodson
Read the article online at: https://www.worldcoal.com/cbm/29072014/coalbed-methane-boosts-company-fortunes-cbm86/