PDA

View Full Version : ASX: SEH backdoor into China's emerging unconventional gas sector


Sparty
06-29-2011, 03:50 AM
The article below shows the increasing interest within China re unconventional gas...

China enters shale gas era with tender offer (http://www.ft.com/intl/cms/s/0/696d9230-a1ab-11e0-b9f9-00144feabdc0.html#axzz1QdIRACDX) By Leslie Hook in Beijing

China's search for natural gas passed a milestone this week as Beijing launched its first tender offer for four shale gas blocks in southern China to underline its determination to move forward with developing unconventional gas resources.


China is the world's largest energy consumer and Beijing is increasingly looking to natural gas to help power the country in coming decades. Shale gas, natural gas trapped in rock and extracted through a water-intensive process known as "fracking" (sic), is believed to be abundant in China, although it is not yet being extracted there.



The tender offer, China's first for shale gas, will not be open to foreign bids at this stage, a disappointment to foreign oil companies such as Shell and BP which have been circling China's unconventional gas sector. read the full article (http://www.ft.com/intl/cms/s/0/696d9230-a1ab-11e0-b9f9-00144feabdc0.html#axzz1QdIRACDX)


Australia's backdoor into China's unconventional gas?

A smallish ASX listed company Sino Gas & Energy Holdings Limited (http://www.sinogasenergy.com) (ASX: SEH) is already focused on developing gas assets in China.

The Company has operated in Beijing since 2005 and holds a portfolio of unconventional gas assets in China through Production Sharing Contracts (PSCs).

The PSCs are located in Shanxi province in the Ordos Basin and cover an area of over 3,700km2. The Ordos Basin is the second largest onshore oil and gas producing basin in China. The area has mature field developments with an established pipeline infrastructure to major markets. Rapid economic development is being experienced in the provinces in which Sino Gas?s PSCs are located and natural gas is seen as a key component of clean energy supply in China.

On Sino Gas?s Tuban prospect, 10 wells have been drilled, the latest being TB-09. Extensive seismic and other subsurface studies have also been conducted. Multiple wells have been flow tested with commercial flow rates achieved on many of the wells, including significant commercial rates on the TB-07 and TB-09 wells. The gas flow rates in this Release are estimated at 200 psi Flowing Tubing Head Pressure unless otherwise noted.

www.sinogasenergy.com (http://www.alternative-energy.com.au/forum/www.sinogasenergy.com)

I hold SEH.

Sparty
05-18-2012, 01:32 PM
The following article makes the Sino Gas and Energy ASX: SEH team look pretty clever:

(Reuters) - China will exclude foreign firms from bidding in its second tender for shale gas blocks, despite a need for overseas technology to help exploit massive reserves of gas trapped within shale rock formations in the world's top energy user.

China launched its shale gas push in late 2009, inspired by a shale boom in the United States


Shale gas development in still at the early stage in China, where technically recoverable reserves of the unconventional fuel are estimated to be even higher than in the United States.


In its first public disclosure of requirements for bidders, the Ministry of Land and Resources said only domestic firms with registered capital of more than 300 million yuan ($47.43 million) could bid. Read full story here (http://www.reuters.com/article/2012/05/18/us-china-shale-tender-idUSBRE84H06D20120518)

More about Sino Gas & Energy (http://www.australian-shares.com/mining/SEH)
Ordos Basin Shale (http://www.google.com.au/search?q=ordos+basin+shale&ie=utf-8&oe=utf-8&aq=t&rls=org.mozilla:en-US:official&client=firefox-a)

I hold SEH