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AAG Energy Obtains New US$250,000,000 Reserve-Based Loan

Release date: 17-Jul-2015

AAG Energy Holdings Limited (Stock code: 2686), a leading and independent CBM producer in China, is pleased to announce that a new US$250,000,000 reserve-based facility agreement was entered into on July 8, 2015 between, among others, Sino-American Energy, Inc. (‘‘SAEI’’), its indirect wholly-owned subsidiary (as borrower), Asian American Gas, Inc., its direct wholly-owned subsidiary (as guarantor), The Hongkong and Shanghai Banking Corporation Limited, Bank of Communication Ltd., Offshore Banking Unit, Standard Chartered Bank (Hong Kong) Limited and Société Générale, Singapore Branch (as original lenders), under which an amount of up to US$250,000,000 (the ‘‘New Reserve-Based Facility’’) is made available for a six-year period. On July 16, 2015, the conditions precedent for drawdown under the New Reserve-Based Facility have been satisfied and SAEI has successfully drawn down part of the US$250,000,000 New Reserve-Based Facility to prepay and replace the previous US$100,000,000 reserve-based facility signed in 2013.

Dr. Stephen Zou Xiangdong, the Chairman of the board of AAG Energy, said: “This is another exciting piece of news building on our successful IPO in Hong Kong last month. The New Reserve-Based Facility demonstrates AAG Energy’s robust commercial CBM production and the strong cashflows from the Panzhuang concession. This new influx of capital will not only allow us to continue to boost our production capacity in the Panzhuang concession, but also enhance our capability for the commercialization of the Mabi concession, as well as providing us with financing for new unconventional investment opportunities to create additional value for our shareholders. I am confident in the solid development of China’s market in CBM and other unconventional resources.”

About AAG Energy Holdings Limited (“AAG Energy”)
AAG Energy (Stock code: 2686) is the leading and independent CBM producer in China, focusing on the development and value optimization of unconventional gas resources to supply clean energy to the Chinese economy. AAG Energy’s key assets, the Panzhuang and Mabi concessions, are located in the southern Qinshui Basin, which contains the largest amount of proved CBM geological reserves of any basin in China. The Panzhuang concession is the most commercially advanced Sino-foreign CBM asset in China and is the first and only Sino-foreign CBM project in China to have received overall development plan approval. The Mabi concession also received preliminary ODP approval in November 2013, which covers an annual capacity of 35 bcf. The proven ability to commercialize CBM, along with a highly regarded management team, has attracted immense interest and support from leading international and Chinese investors to AAG Energy including Warburg Pincus, Baring Private Equity Asia, Chinastone and Ping An. For further details, please visit www.aagenergy.com.

Media Contact
Marshall Wu, AAG Energy Holdings Limited, +86 10 6590 0988, marshall.wu@aagenergy.com

 
  • Press Contact

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