SINO Gas & Energy Holdings (SEH) chief executive Glenn Corrie is looking forward to 2017 as the company plans a production ramp-up with a new joint venture partner.
SEH, which is listed on the Australian Securities Exchange, owns 49 per cent of Sino Gas Energy Limited (SGE), which in turn holds a 64.7% stake in the Linxing production sharing contract (PSC) and 49% in the Sanjiaobei PSC.
SEH’s former joint venture partner, China based MIE Holdings, sold its 51% stake in SGE to China New Energy Mining Limited for US$220 million in April.
Speaking with Oil & Gas Australia in late May, Mr Corrie said their new joint venture partners were veterans in the industry, with the backing of a strong parent group in the nation.
“MIE did us well as a partner for three years, but their business strategy and their financial position really called for them to make a sale of the asset,” he said.
“It just so happened that China New Energy Mining has come on board… That combination will be very strong for us going forward.”
“We will have production growing throughout the year and we are still planning to have 25 new wells by the end of the year – the new partnership will certainly help.”
SEH plans to increase production to between 300 million to 500 million standard cubic feet of gas per day by 2020.