Sino Gas & Energy Updates on Operations at its Assets in China

Seismic

The potential for further seismic work on Linxing (East) will be determined following the analysis of a combination of drilling results from the exploration wells planned for mid-2013 and previous seismic analysis.

Drilling

The first well of a two well exploration program to the west of Linxing (East), LXDG-01, completed drilling in late June, with initial mud and wireline logs identifying 108.6 feet (33.1 meters) of pay across 8 pay intervals. A rig is now being mobilised to LXDG-02, which is scheduled to commence drilling in August, further to the south.

Testing

The dewatering program continues on six wells and gas to surface has been achieved on the five of the wells to date. Dewatering continues to obtain flow rate data for Chinese Reserve Reporting (CRR) purposes and will be incorporated into the CRR submission, expected to be completed in August. Sufficient data is currently being gathered from these six wells to enable CRR submission, and additional wells will commence dewatering prior to the installation of production facilities.

Sanjiaobei - Sino Gas 24 percent


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