Sino Gas And Energy Holdings Limited (ASX:SEH) Signed Gas Marketing Agreement With PetroChina (SHA:601857)

Perth, Feb 24, 2011 AEST (ABN Newswire) - Sino Gas & Energy Holdings Limited (ASX:SEH), an Australian Company focused on developing Chinese Gas Assets, is pleased to announce that it has signed a Joint Gas Marketing Agreement (GMA) with PetroChina (SHA:601857) (HKG:0857) (NYSE:PTR).

The GMA signed with PetroChina Coal Bed Methane (PCCBM), its partner on the Sanjiaobei Production Sharing Contract (PSC), formalises the establishment of a Joint Marketing Group to manage gas sales from the Pilot.

This group comprising representatives from PCCBM and Sino Gas, is responsible for jointly negotiating terms and conditions with gas buyers and administration of gas sales.

Under the GMA joint marketing continues until the commencement of commercial production. The GMA is otherwise governed by the Sanjiaobei PSC.

Sino Gas Managing Director Stephen Lyons commented that he was very pleased that Sino Gas together with its partner, PCCBM, has continued to make substantial progress towards the development of the Sanjiaobei Gas Assets.

"We have been working very closely with PCCBM to plan the Pilot and with the GMA now in place we have the foundation under which to commence the Pilot program.

The Pilot is a critical step towards development in that it provides sustained well performance data to prepare the Chinese Reserves report which when completed will be the key building block towards the preparation of the Overall Development Program", said Mr Lyons.

Sino Gas intends to commission the first in what will be a series of Pilot wells on the SJB03 Gas Discovery Well during March 2011. Other wells will be added to the Pilot as they are completed.

Contact

Stephen Lyons Managing Director Sino Gas and Energy Tel: +86-139-1148-1669 +86-10-6530-9260 Email: slyons@sinogasenergy.com Gavin Harper Chairman Sino Gas & Energy Email: gharper@sinogasenergy.com http://www.sinogasenergy.com