SINO GAS & ENERGY HOLDINGS LIMITED www.sinogasenergy.com | ASX: SEH
www.sinogasenergy.com | ASX: SEH
Investor Presentation February 2016
Sino Gas & Energy Holdings Limited (ASX:SEH, "Sino Gas", "the Company") holds a 49% interest in Sino Gas & Energy Limited ("SGE") through a strategic partnership with MIE Holdings Corporation ("MIE" SEHK: 1555) to develop two blocks held under Production Sharing Contracts (PSCs) with CNPC and CUCBM. SGE has been established in Beijing since 2005 and is the operator of the Sanjiaobei and Linxing PSCs in Shanxi province. See Slide 19 for detailed structure.
Certain statements included in this release constitute forward looking information. This information is based upon a number of estimates and assumptions made on a reasonable basis by the Company in light of its experience, current conditions and expectations of future developments, as well as other factors that the Company believes are appropriate in the circumstances. While these estimates and assumptions are considered reasonable, they are inherently subject to business, economic, competitive, political and social uncertainties and contingencies.
Many factors could cause the Company's actual results to differ materially from those expressed or implied in any forward-looking information provided by the Company, or on behalf of, the Company. Such factors include, among other things, risks relating to additional funding requirements, gas prices, exploration, acquisition, development and operating risks, competition, production risks, regulatory restrictions, including environmental regulation and liability and potential title disputes. Forward-looking information is no guarantee of future performance and, accordingly, investors are cautioned not to put undue reliance on forward-looking information due to the inherent uncertainty therein. Forward-looking information is made as at the date of this release and the Company disclaims any intent or obligation to update publicly such forward-looking information, whether as a result of new information, future events or results or otherwise.
The purpose of this presentation is to provide general information about the Company. No representation or warranty, express or implied, is made by the Company that the material contained in this presentation will be achieved or prove to be correct. Except for statutory liability which cannot be excluded, each of the Company, its officers, employees and advisers expressly disclaims any responsibility for the accuracy or completeness of the material contained in this presentation and excludes all liability whatsoever (including in negligence) for any loss or damage which may be suffered by any person as a consequence of any information in this presentation or any error or omission therefrom.
This presentation should be read in conjunction with the Annual Financial Report as at 31 December 2014, the half year financial statements together with any ASX announcements made by the Company in accordance with its continuous disclosure obligations arising under the Corporations Act 2001 (Cth).
www.sinogasenergy.com | ASX: SEH
The statements of resources in this release have been independently determined to Society of Petroleum Engineers (SPE) Petroleum Resource Management Systems (PRMS) standards by internationally recognised oil and gas consultants RISC (announced 3 March 2015) using probabilistic estimation methods. These statements were not prepared to comply with the China Petroleum Reserves Office (PRO-2005) standards or the U.S. Securities and Exchange Commission regulations and have not been verified by SGE's PSC partners CNPC and CUCBM.
All resource figures quoted are unrisked mid-case unless otherwise noted. Sino Gas' attributable net Reserves & Resources assumes PSC partner back-in upon ODP approval (i.e. CUCBM take their entitlement of 30% interest in Linxing PSC and CNPC take their entitlement to 51% in the Sanjiaobei PSC), CBM Energy's option to acquire an interest of 5.25% in the Linxing PSC (by paying 7.5% of back costs) is exercised, and MIE fulfill funding obligations under the strategic partnership agreement. Reserves & Resources are net of 4% in-field fuel for field compression and field operations. Reference point is defined to be at the field gate. No material changes have occurred in the assumptions and subsequent work program exploration and appraisal results have been in line with expectations.
Information on the Resources in this release is based on an independent evaluation conducted by RISC Operations Pty Ltd (RISC), a leading independent petroleum advisory firm. The evaluation was carried out by RISC under the supervision of Mr Peter Stephenson, RISC Partner, in accordance with the SPE-PRMS guidelines. Mr Stephenson has a M.Eng in Petroleum Engineering and 30 years of experience in the oil and gas industry. Mr. Stephenson is a member of the SPE and MIChemE and consents to the inclusion of this information in this release. RISC is independent with respect to Sino Gas in accordance with the Valmin Code, ASX listing rules and ASIC requirements.
Sino Gas' Attributable Net Reserves & Resources as at 31 December 2014SEH Attributable Net Reserves & Resources
1P
Reserves (Bcf)
2P
Reserves (Bcf)
3P
Reserves (Bcf)
2C
Contingent Resources (bcf)
P50
Prospective Resources (bcf)1
EMV10 (US$m)2
31 December 2014
(Announced 3 March 2015)
350
448
557
739
649
$3,076
31 December 2013
(Announced 4 March 2014)
129
291
480
850
1,023
$2,258
Total 2014 Change (+/-%)
+54% (2P)
-13%
-37%
+36%
Gross Project
31 December 2014
1,238
1,608
2,022
2,560
2,568
N/A
Note 1. The estimated quantities of petroleum may potentially be recovered by the application of future development project(s) relate to undiscovered accumulations. These estimates have both an associated risk of discovery and a risk of development. Further exploration and appraisal is required to determine the existence of a significant quantity of potentially moveable hydrocarbons.
Note 2. EMV is the probability weighted net present value (NPV), including the range of project NPVs and the risk of the project not progressing. Project NPV10 is based on a mid-case wellhead gas price of US$9.76/Mscf and lifting costs (opex+capex) of ~US$1.3/Mscf for mid-case Reserves, Contingent & Prospective Resources.
www.sinogasenergy.com | ASX: SEH
Corporate Information - as at 31 January 2016 Share Register - January2016
ASX Listed (S&P ASX 300) | SEH |
Share Price | A$0.033 |
Issued Shares | 2,074m |
Market Cap | US$48m |
Cash Balance (31 Dec 2015) | US$63m |
Drawn/undrawn debt facilities | US$10/40m1 |
Top Shareholders - Jan 2016 | Shares (m) | % |
FIL Investment Management | 202.8 | 9.8% |
Kinetic Investment Partners | 129.5 | 6.3% |
Commonwealth Bank of Australia | 93.1 | 4.5% |
SG Hiscock | 72.1 | 3.5% |
Perennial Value | 64.5 | 3.3% |
0.25
0.20
0.15
0.10
0.05
0.00
Sino Gas & Energy Australian Peers ASX Energy Brent
1 - Tranche B of $40m available on satisfaction of conditions precedent (including Macquarie
4 www.sinogasenergy.com | ASX: SEH
obtaining internal credit approvals). Refer to ASX announcement 29/08/2014.
Sino Gas & Energy Holdings Limited issued this content on 08 February 2016 and is solely responsible for the information contained herein. Distributed by Public, unedited and unaltered, on 07 February 2016 21:49:12 UTC
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