Sino Holdings Gets Finance for Sanjiao CBM Project

Sino Oil and Gas Holdings has announced that its Sanjiao Block coalbed methane (CBM) project has received financing support from the China Development Bank.

Earlier this month, Orion Energy, a wholly-owned subsidiary of the Group, entered into a financing agreement with CDB Leasing Co., Ltd. The financing will support the development and operation of the Sanjiao Block CBM project.

Sino Oil and Gas Holdings Executive Director and Chief Executive Officer Mr. King Hap Lee said: "As announced on 15 November, an independent report issued by a competent person endures that the aggregate of the proved reserves, probable reserves plus possible reserves of the CBM field attributable to Orion reach an amount of not less than 669.5 bcf., a 15% increase over the aggregate of such reserves included in the circular at the time of the acquisition."

The granting of project financing from CDB will ensure a reliable, abundant and cost-effective source of funding for the Sanjiao Block project, which is positive and critical to expediting the project's pace of development and commercialization. Management will utilize the funding from CDB in a bid to optimize returns for shareholders, he added.