Sino Gas And Energy Holdings Limited (ASX:SEH) TB09 Well Test Initial Gas Flow 850,000 Scf/Day

Perth, May 25, 2011 AEST (ABN Newswire) - Sino Gas And Energy Holdings Limited (ASX:SEH), an Australian company developing unconventional gas assets within the Ordos Basin, Shanxi Province China, is pleased to announce an initial gas flow of approximately 850,000 scf/day on its TB09 Gas Discovery Well.

As of 14:00 hours yesterday, 24 May 2011, Sino Gas's testing contractor, CCDC Changqing Downhole Service Company (CCDC) had completed the 'rig up' and all safety checks and set the tubing conveyed perforating gun at the required depth. The perforation was then successfully carried out on a single zone.

The well flowed gas relatively quickly and after a reasonably constant flow was obtained was then directed to the gas separation equipment to commence the process of measuring the gas flow rate.

The well has now flowed overnight for a period of 20 hours with a relatively stable flow rate of approximately 850,000 scf/day at a relatively high tubing head pressure of around 660 psi, significantly in excess of Sino Gas's initial commercial flowrate requirements.

Forward operations are to continue to flow the well and to confirm all relevant test measurements.

Commenting on the TB09 test, Sino Gas Managing Director, Stephen Lyons, said he was very pleased with another successful flow test on the Linxing PSC.

"The TB09 Gas Discovery well was drilled in close proximity to the very successful TB07 well that flowed at 1,800,000 scf/day with a 600psi tubing head pressure from a single zone with an estimated deliverability of 2,900,000 scf/day at a tubing head pressure of 200 psi.

The initial result on TB09, obtained without stimulation of the well from a single zone, has delivered yet another result well above Sino Gas's commerciality threshold.

Sino Gas will now continue to flow back the well and determine whether to hydraulically fracture stimulate TB09 before proceeding to conduct the test on the next Gas Discovery well," said Mr Lyons.

Further updates will be provided as the test program proceeds.

Contact

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