HKEx: HK$0.00 Search English|简体中文
Home>Investor Relations>Press Releases
Press Releases

AAG’s CBM Project Awarded Asia-Pacific Oil & Gas Deal of the Year by PFI

Release date: 06-Mar-2014

AAG Energy Limited (AAG), through its fully owned subsidiary Sino-American Energy Inc., has raised a five-year US$100m senior secured reserve-based lending facility. The deal has been recognized with the prestigious "Asia-Pacific Oil & Gas Deal of the Year" at the Project Finance International (PFI) Awards.

The Panzhuang and Mabi concessions developed and operated by AAG are two of the most commercially advanced CBM concessions in China. The commercial success in Panzhuang has set a tone to revitalize international interest for CBM projects in China. The regulatory environment has become less uncertain and unconventional technology has progressed rapidly demonstrated by increasing commercial flow rates and commercial sales. The above advancements have greatly diminished the commercial risks associated with CBM projects, and the lending facility completed by AAG sets a valuable precedent for the financing of future CBM projects in China.

Steve Zou, Founder, Chairman, and CEO of AAG commented “Our expanding commercial production has allowed AAG to enhance its participation in Project Finance. Increased access to low cost funding has been a goal for us and the recognition from a benchmark publication such as PFI is a testament to the commercial progress we are making”.

In 2013 Panzhuang gross production increased 56% year over year to 5.45 BCF, while Mabi gross production increased 196% to 0.54 BCF. Panzhuang obtained formal Overall Development Plan (ODP) approval in 2011 and Mabi received preliminary ODP approval from the National Energy Administration (NEA) last year. The Mabi preliminary approval allows for greater commercial development preparation and AAG targets 2H2014 for commercial sales to commence in Mabi. AAG’s pace of commercialization continues to accelerate. From 2009 to 2013 Panzhuang gross production has grown at a compound annual growth rate (CAGR) of ~29%.

 
  • Press Contact

    Jiayi Wu, Joint Company Secretary's Assistant, +86 1592-859-9449, jiayi.wu@aagenergy.com