Sino Oil and Gas Holdings' Third Quarter CBM Output at 14.29 mcm

Sino Oil and Gas Holdings Limited on Thursday said third quarter coal bed methane (CBM) output from China's Sanjiao block stood at 14.29 million cubic meters.

Output during the same period last year was recorder at 10.97 million cubic meters.

CBM sales volume of 13.72 million cubic meters during the quarter was up 30.3 percent as compared with the same period last year.

The sales revenue increased by 42.2 percent to HK$21.85 million when compared to same period last year. This was mainly attributable to the increase in sales volume and sale price, the company said.

The CBM sales for the period were composed of industrial piped CBM sales and residential piped CBM sales which accounted for 97.9 percent and 2.1 percent respectively.

By the end of the third quarter of 2015, the Sanjiao CBM project has completed a total of 75 wells, including 42 multi-lateral horizontal wells, while the remaining 33 are vertical wells. Out of the aforesaid 75 wells, 67 wells are under dewatering stage, of which 57 wells have accessed to the gas collection pipeline network.

Sanjiao CBM block is located in the north-western part of China between Shanxi and Shaanxi provinces, along the eastern edge of the Ordos Basin. Ordos Basin is located in central and western regions which is the second largest sedimentary basin in China. Its proved reserves of natural gas, coal bed methane and coal are all ranked the first in the country.