Sino Gas & Energy Holdings Limited
(ASX:SEH) has announced it has reached an agreement with PetroChina CBM on the allocation of pilot gas from its Sanjiaobei production sharing contract.
Sino Gas will receive revenue allocation as prescribed in the PSC for pilot gas proceeds up to a production threshold of 3 billion cubic feet.
The agreement only applies to production volumes from Sanjiaobei PSC and does not affect the pilot gas production from the Linxing PSC processed through the Sanjiaobei station.
Approximately US$2 million is expected to be received in Q3 of 2016 for gross gas sold.
Sino Gas & Energy Holdings Limited reported a net loss of $17.8 million at 31 December 2015.
