Sino Oil and Gas Holdings Ltd
Sino Oil and Gas Holdings Limited Net Profit of the First Half of 2015 Surged More Than 130% – Revenue from CBM Continued to Raise; Group’s Business Shows Stable Growth Momentum
For Immediate Release Sino Oil and Gas Holdings Limited Net Profit of the First Half of 2015 Surged More Than 130%
Business Overview The other revenue generated from the trial sales of coalbed methane(“CBM”) has increased by approximately 49%, amounting to approximately HK$42,268,000 (2014 interim: approximately HK$28,352,000), mainly attributed to the infrastructure of Sanjiao CBM project completed, including the CBM processing station and related sales pipelines, leading to the increase of CBM sales-to-production ratio, as well as the CBM price for industrial users raised by 13.9% compared to the same period last year. Following the trial sales of CBM further elevated, the project has already become one of the major source of the Group’s revenue composition. During the period, the Group’s further enhanced the internal cost controls, thereby the administrative expenses have been successfully reduced by approximately 15.7%. Turnover for the first half amounted to approximately HK$5,963,000 (2014 interim: approximately HK$8,516,000), which only included the results from oil exploitation operations in Liuluoyu, Yanjiawan and Jinzhuang oil fields in Shaanxi Province. Sanjiao CBM Project During the period, the Sanjiao project recorded CBM production of approximately 27.9 million cubic meters (2014 interim: approximately 22.93 million cubic meters) and CBM sales of approximately 27.38 million cubic meters (2014 interim: approximately 20.53 million cubic meters), resulting in a gas sale-to-production rate of approximately 98.1% (2014 interim: approximately 89.5%). In terms of the composition of gas sales throughout this period, industrial piped CBM sales accounted for approximately 89.7% of total sales (2014 interim: approximately 89.7%), while residential piped CBM sales contributed approximately 10.3% (2014 interim: approximately 10.1%). Total piped CBM sales accounted for nearly 100% of total gas sales during the period (2014 interim: approximately 99.8%). At the end of 30 June 2015, the Sanjiao CBM project has completed a total of 73 wells, comprising 40 multilateral horizontal wells and 33 vertical wells. Out of the total 73 wells, 65 wells were in the normal dewatering stage, of which 55 wells had access to a gas collection pipeline network. In August 2012, China National Development and Reform Commission (“NDRC”) – National Energy Administration (“NEA”) granted a reply to the application of a submitted overall development plan (“ODP”) for the development of the Sanjiao CBM project. It is an important milestone for the project to enter into commercial production process. The Group has completed all necessary assessment reports and granted all required governmental approvals. It is expected that the final approval of ODP is going to be granted in the near future. Dr Dai Xiaobing, Chairman of Sino Oil and Gas Holdings (“Dr Dai”) said: “Upon the ODP approval, the Group will officially commence the construction with the annual CBM production capacity of 500 million m3, which includes, but not limited to large-scale drilling, expansion of central processing station, laying and improving gas gathering pipelines as well as entering into new sales agreements.” Crude Oil Business For the potential acquisition, Dr Dai said, “Currently, the international oil price dropped with the trend of continuous decline, it has provided the oil and gas companies with a good opportunities of overseas acquisition which leads to a new oil and gas mergers and acquisitions wave. The Group will also seek for merger and acquisition opportunities of high-quality oil and gas resources globally, balance the development of oil and gas business portfolio, strengthen the overseas business plan and thus steadily put forward the international development process.” Prospects For further enquiries, please contact: About Sino Oil and Gas Holdings End of Press Release +++++ Document: http://n.equitystory.com/c/fncls.ssp?u=GMRIFOSVBU Document title: Sino Oil and Gas Holdings Limited, Net Profit of the First Half of 2015 Surged More Than 130% – Revenue from CBM Continued to Raise; Group’s Business Shows Stable Growth Momentum Key word(s): Half Year Results 24/08/2015 UTC+8 Dissemination of a Press Release, transmitted by EQS TodayIR – a company of EQS Group AG. The issuer is solely responsible for the content of this announcement. Media archive at www.todayir.com |
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