Ann: Sino Gas - Significant flow rate & Sanjiaobei update, page-42

All interesting to note and differing views based on fact are always worth considering.

My view/understanding is the RISC guys have approached the "commercial flow figures" and booking of resource and reserves following standard SPE methods and did not over do the original commercial flow figures unlike some other independent third party consultants reporting for E&P companies. I am more than happy with the work completed by RISC and they have been pretty consistent throughout.

The issue/value chain for SGE to be resolved going forward is can management:

Secure ODP and cost recovery and long term production/sales contract.
Secure funding for full field development with or without the Chinese partner.
Deal with the delays created by the Chinese partners.

In the meantime as noted by CH4 there should be a big push to connect existing wells and sell gas (would like to see a horizontal included). This would also provide some comfort/or not of longer term producibility.

My concern is not the actual resource or producibility at commercial rates but rather the management’s ability to deliver and meet its own milestones. The track record of the current appears no better than the previous and the real question is does the MD/Board have a clue on how to operate a E&P company in China and report to the market.