Sino Gas & Energy Raises $50 Mn Debt for China Gas Operations

Sino Gas & Energy Holdings Limited has signed a term sheet with Macquarie Bank Limited to act as sole lender of a structured term debt facility of up to $50 million to funds its Ordos Basin gas projects in Shanxi Province, China.

“Proceeds are to be used to support Sino Gas’ payments of its share of cash calls by joint venture entity Sino Gas & Energy Limited (SGE) to fund SGE’s working interests in the Linxing and Sanjiaobei Production Sharing Contract’s (PSC’s),” the company said Wednesday.

Commenting on the binding agreement Gavin Harper, Chairman of Sino Gas, said, “With $57 million in cash as at the end of the March quarter and the facility of up to US$50 million, Sino Gas is strongly positioned to fund its development share of the PSCs towards early production and Overall Development Plan submissions and start the transition to becoming a significant gas producer”.

Sino Gas & Energy Holdings Limited (Sino Gas) is an Australian energy company focused on developing Chinese unconventional gas assets. Sino Gas holds a 49% interest in Sino Gas & Energy Limited (SGE) through a strategic partnership completed with MIE Holdings Corporation (MIE) in July 2012. SGE is the operator of the Linxing and Sanjiaobei PScs in the Ordos Basin, Shanxi province.