28/06/2013
[June 26, 2013, Hong Kong] MIE Holdings Corporation (“MIE” or “the Company”, together with the subsidiaries, the “Group”; Stock Code:1555), an independent upstream oil and gas company engaged in the exploration, development and production of crude oil and natural gas in China, Kazakhstan and USA, is pleased to announce that its subsidiary Sino Gas & Energy Limited (“SGE”) has signed a pilot gas sales agreement (“Sales Agreement”) with its PSC partner China United Coalbed Methane Corporation Limited (“CUCBM”).
Under the Sales Agreement, pilot production shall commence as early as December 2013. SGE will supply the pilot production of gas from Linxing project to CUCBM who will sell the gas to the local market in Shanxi Province. During the one year test production period, the parties will use their best efforts to supply and take a maximum quantity of gas from the pilot program. Initially seven wells are planned to be connected to a central gathering station located on the western portion of Linxing area. Additional wells are expected to be put online as wells are drilled and gathering facilities are expanded. After the test production and subject to the approval of Chinese reserve report, overall development plan, sales volumes can increase up to 1,000,000 m3/day. Any incremental sales volumes beyond this amount are dependent upon well performance and further negotiations.
An initial price of approximately US$7/Mscf (thousand standard cubic feet) will apply during the first year, and will be adjusted on an annual basis by reference to Shanxi Province market prices and applicable government policies.
Subject to the approval of Chinese reserve report, overall development plan and other licensing requirements for the gas production, the gas sales contract is valid over the life of the Linxing PSC.
SGE is the sole operator and foreign contractor pursuant to two PSCs, namely Linxing PSC and Sanjiaobei PSC, both of which are located on the eastern flank of Ordos Basin. The contracted area is approximately 1,874 square kilometers for Linxing PSC and 1,124 square kilometers for Sanjiaobei PSC. MIE holds a 51% interest in SGE.
About MIE Holdings Corporation
MIE is an independent oil and gas company engaged in the exploration and production of oil and gas in China, Kazakhstan and USA. The Group operates the Daan, Moliqing and Miao 3 oilfields in the Songliao Basins and Dagang – Kongnan block in the Huanghua Basin under four separate production sharing contracts with PetroChina, the largest oil company in China and holds a 51% stake in a joint venture that operates Linxing and Sanjiaobei with unconventional gas assets in the Ordos Basin under two separate production sharing contracts. The Group also holds an exploration contract and four production contracts that allow the Group to conduct exploration and production activities in the Mangistau province in the southwestern region of Kazakhstan. In addition, the Group pursues other development and production opportunities in China, and exploration, development and production opportunities internationally, both independently and in partnership with other major and independent oil companies.
MIE is listed on the main board of Hong Kong Stock Exchange with stock code 1555.
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Issued by Trinity Financial Communications Group Limited for and on behalf of MIE Holdings Corporation.
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