Australia's Sino Gas & Energy Holdings Ltd. disclosed Thursday that China New Energy Mining Ltd. (CNEML) has officially become its new partner after successfully completing the $220 million acquisition of a 51 percent interest in joint venture firm Sino Gas Energy Ltd. (SGE).
Sino Gas' previous joint venture partner, China's MIE Holdings Corp. (MIE) agreed in April to sell the entire issued share capital and loans of Asia Gas & Energy Ltd., the holding company of its stake in SGE, to CNEML.
Meantime, Sino Gas management have met with CNEML to ensure a smooth transition, discuss and agree key objectives for 2016 and obtain alignment on key strategic elements to deliver the full value of the Sanjiaobei and Linxing Production Sharing Contracts (PSC) in the Ordos Basin in China's Shanxi Province.
CNEML has confirmed its commitment to the short term objectives of increasing gross production from the PSCs' Central Gathering Stations to 25 million standard cubic feet per day (MMscf/d) and obtaining Chinese Reserve Report approvals by the end of 2016. In addition, both firms have discussed the planning for full field development with a focus on Overall Development Plan (ODP) approvals and ramping up production.
"Sino Gas is pleased to officially welcome CNEML as our new Joint Venture partner and view their acquisition as transformational, enabling us to deliver the significant underlying value of our assets," Sino Gas Managing Director Glenn Corrie said in the press release.
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