Our PSCs are located in Shanxi Province, China around 500km from Beijing.

Our Production Sharing Contacts (PSCs) sit in the largest gas producing region in China, the Ordos basin, with numerous large producing fields in the region including Mizhi, Changdong, Jingbian, Changbei and Sulige. Major regional pipelines run pipeline across the acreage, with multiple tie-in points providing access to key demand centers.

The Ordos Basin has experienced significant reserves growth since 1999 and fields discovered in the basin are believed to contain Gas Initially in Place of over 150Tcf. It is a cratonic basin covering an area of 250,000 sq km with up to 10,000m of Palaeozoic and Mesozoic sediments. The Jingbian, Wushenqi, Changbei, Tabamiao, Sulige, Chandong and Mizhi gas fields to the west are producing and under further development. They are largely located in an area of a gentle monocline, which extends into the Sino Gas’ PSCs. These fields are understood to be stratigraphically trapped1, with gas present where reservoir quality sand bodies are present. As such, the resource area is not limited to the structural highs, but are extensive over the area. The adjacent CNPC field to Sino Gas’ Sanjiaobei PSC has been on production since 2005, where over 200 producing wells using a combination of vertical and horizontal well completions have been estimated.

The key gas fields in the Ordos Basin together with the pipeline infrastructure are illustrated in the figure below.

PSC Location

The Linxing and Sanjioabei PSCs cover approximately 3,000km2 with about 40% discovered resource area (reserve and contingent resources applied) and about 30% considered prospective as of year end 2015.

1 Yongtai Yang et al 2005 Tectonic and stratigraphic controls of hydrocarbon systems in the Ordos basin: A multicycle cratonic basin in central China AAPG Bulletin; February 2005; v. 89; no. 2