Sino raises $53m for gas project

Sino Gas & Energy has taken advantage of a strong rally in its share price, reaching an agreement to raise $53 million at 20 cents per share, to progress development of its coal seam gas assets in China’s Ordos Basin.

The raising will also provide additional working capital for the company’s forward program of seismic drilling, and development of its production sharing contracts.

A total of 265 million ordinary shares will be issued at 20 cents per share to investors via two tranches, after Euroz Securities and Argonaut Securities agreed to jointly lead the placement.

The first tranche will raise approximately $37.9 million and is scheduled for settlement on December 3, with a second tranche of about $15.1 million subject to shareholder approval at a general meeting scheduled for December 30.

“Sino Gas is delighted with the strong demand and support shown for the placement, from both new and existing institutional and sophisticated investors,” chief executive Robert Bearden said.

“Sino Gas is in an exciting phase of development of its unconventional gas assets in China’s Ordos Basin and is very focused on commercialising the assets and increasing shareholder value.”

Ordos Basin is the second largest onshore oil and gas producing area in China.

Shares in Sino are trading up half a cent since open at 22 cents per share, as of 1.15pm, WST.