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| Wednesday, 27 April 2011, 17:20 HKT/SGT | |
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Source: Sino Gas | |
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HONG KONG, Apr 27, 2011 - (ACN Newswire) - Sino Gas & Energy Holdings Limited ("Sino Gas" or the "Company"; ASX: SEH), an Australian company developing unconventional gas assets within the Ordos Basin, Shanxi Province China, is pleased to announce that the Company has signed an agreement ("Agreement") to raise up to A$29.4 million in new funds from Spring Tree Special Opportunities Fund, LP ("Spring Tree"), a New York-based institutional investor, over the next two years.
Pursuant to the Agreement, Sino Gas will receive up to A$29.4 million comprising an upfront convertible security of A$600,000 and monthly drawdowns of between A$600,000 and A$1.2 million over the next two years. Sino Gas will issue such shares at prices linked to the prevailing share price at that time. Sino Gas has the right to terminate the Agreement at no cost if the share price is below a floor price specified in the Agreement. The Company may also terminate the Agreement at any time during the first 12 months on payment of A$250,000, satisfied in cash or through the issue of shares and thereafter at no cost.
The funding enables Sino Gas to conduct the high impact appraisal program being planned for 2011 and 2012. Success in this program is expected to result in substantial increases in gas sales as Sino Gas moves towards developing a gas resource base (GIIP) of over 9 Tcf on the Linxing and Sanjiaobei Production Sharing Contracts (PSCs) in North China's industrial heartland.
Based in New York, SpringTree is an investment fund that makes equity and equity-linked investments in high growth potential public companies around the world. SpringTree has been active in Australia and has successfully funded companies in the energy, pharmaceutical and resources sectors.
Mr Eugene Tablis, Managing Director of SpringTree Global Investors, LLC, the General Partner (Manager) of SpringTree, said, "This is our fifth ASX-listed energy investment in the recent couple of years, and our ASX energy portfolio has performed very well historically. We have been impressed with Sino Gas' management team and progress to date. We hope that our funding will enable Sino Gas to implement its plans and unlock the value of its assets."
Mr Stephen Lyons, Managing Director of Sino Gas, said, "The Agreement recognized the significant achievements being made by the Company. The Agreement allows the Company to confidently implement its commercialisation plans whilst preserving the flexibility to continue to explore investment arrangements with potential strategic partners."
Contact:
Quam IR
Ms Anita Wan
Tel: +852-2217-2687
E-mail: anita.wan@quamgroup.com
Ms Sharon Au
Tel: +852-2217-2680
E-mail: sharon.au@quamgroup.com
Ms Venus Lam
Tel: +852-2217-2909
E-mail: venus.lam@quamgroup.com
Topic: Investment
Source: Sino Gas
Sectors: Gas & Oil
https://www.acnnewswire.com
From the Asia Corporate News Network
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