Sino Oil to acquire 70pct in coal bed methane field in Shanxi
Dow Jones reported that Sino Oil & Gas Holdings Ltd has agreed to buy a 70% stake in a coal bed methane field in China Shanxi and Shaanxi provinces for HKD 2.34 billion.
Sino Oil & Gas said in a statement that PetroChina Co is the project mainland China partner. Sino Oil & Gas formerly known as Genesis Energy Holdings Ltd said it will acquire the stake by purchasing the entire issued share capital of Orion Energy International Inc.
The deal will allow Sino Oil & Gas to engage in the joint exploration, development and production of a coal bed methane field spanning 461.74 square kilometers in the Ordos Basin of Shanxi and Shaanxi provinces. Sino Oil & Gas said the basin contains one-sixth of the country coal and coke reserves and one-third of its natural gas reserves.