Sino Gas International Holdings, Inc. Announces New Acquisition and Second Phase of Existing Project
10 July 2007 - 10:00PM
PR Newswire (US)
BEIJING, July 10 /Xinhua-PRNewswire-FirstCall/ -- Sino Gas
International Holdings, Inc. (OTC:SGAS) (BULLETIN BOARD: SGAS)
("Sino Gas", the "Company") and its subsidiary Beijing Zhong Ran
Wei Ye Gas Co., Ltd ("Beijing Gas") announced the acquisition of
Guannan Zhongyuan Natural Gas Co., Ltd. ("Zhongyuan"), a privately
held natural gas distribution business in Jiangsu Province of
China, on June 20, 2007 for approximately $987,000 in cash. The
acquisition includes all the assets, customer relationships and the
concession rights for the gas distribution in Guannan County in
Jiangsu Province for a period of 30 years. Zhongyuan currently has
3,951 connected households with estimated annual revenues of
approximately $197,000 from recurring gas sales. The Company
expects to connect additional 3,240 and 4,360 households in Guannan
County in 2007 and 2008 respectively. The estimated revenues from
connection fees will be $480,500 in 2007 and $646,500 in 2008. In
addition, the recurring natural gas supply for the connected
households in this region is expected to generate $249,975 and
$349,850 in revenues during 2007 and 2008. In addition, Sino Gas
announced the continuation of a natural gas connection project for
Shanghai Datun Energy Co., Ltd. in Pei County in Jiangsu Province.
The second phase of connecting an additional 6,000 household will
finalize the project, which began last year, of connecting a total
of 18,000 households. The completion of the project in 2007 will
bring approximately $1.74 million in revenue from connection fees
from 6,000 households and it is expected to generate $37,500 from
gas sales to those households in the fourth quarter of 2007. The
Company is contracted to supply natural gas for all the connected
households for 30 years. "We are very pleased to announce the
addition of a new subsidiary and the completion of a major
project," commented Mr. Yu-chuan Liu, Chairman, CEO and President
of Sino Gas. "These initiatives will help accelerate our growth
over the next couple of years and bring us one step closer to our
goal of becoming a leading distributor of natural gas in China."
About Sino Gas International Holdings, Inc. The Company, through
its indirectly wholly-owned subsidiary, Beijing Zhong Ran Wei Ye
Gas Co., Ltd. ("Beijing Gas"), and the subsidiaries of Beijing Gas,
is a leading developer of natural gas distribution systems in
small- and medium-sized cities in China, as well as a distributor
of natural gas to residential, commercial and industrial customers
in China. The company owns and operates 23 natural gas distribution
systems serving approximately 63,000 residential and six commercial
and industrial customers. Facilities include approximately 700
kilometers ("km") of pipeline and delivery networks with a daily
capacity of approximately 70,000 cubic meters of natural gas. The
company is currently constructing four additional natural gas
distribution systems, and it has two more in the planning stages.
Beijing Gas owns and operates natural gas distribution systems
primarily in Hebei, Jiangsu, Anhui and Shandong Provinces. For
further information, visit the Company's website at
http://www.sino-gas.com/ . About Guannan Zhongyuan Natural Gas Co.,
Ltd. Guannan Zhongyuan Natural Gas Co., Ltd. is a private developer
of natural gas distribution systems as well as a distributor of
natural gas to residential, commercial and industrial customers in
Guannan County in Jiangsu Province of China. Safe Harbor Statement
This announcement contains "forward-looking statements" within the
meaning of the safe harbor provisions of the Private Securities
Litigation Reform Act of 1995. All statements other than statements
of historical fact in this announcement are forward-looking
statements, including but not limited to, the Company's ability to
raise additional capital to finance the Company's activities; the
effectiveness, profitability, and the marketability of its
products; legal and regulatory risks associated with the Share
Exchange; the future trading of the common stock of the Company;
the ability of the Company to operate as a public company; the
period of time for which its current liquidity will enable the
Company to fund its operations; general economic and business
conditions; the volatility of the Company's operating results and
financial condition; and other risks detailed in the company's
filings with the Securities and Exchange Commission. These
forward-looking statements involve known and unknown risks and
uncertainties and are based on current expectations, assumptions,
estimates and projections about the companies and the industry.
Although the company believes that the expectations expressed in
these forward looking statements are reasonable, they cannot assure
you that their expectations will turn out to be correct, and
investors are cautioned that actual results may differ materially
from the anticipated results. All information in this release is as
of July 10, 2007. The Company undertakes no duty to update any
forward-looking statements to conform the release to actual results
or changes in its circumstances or expectations after the date of
this release. For more information, please contact: Sino Gas
International Holdings, Inc. Ms. Fang Chen, Chief Financial Officer
Tel: +86-10-8260-0527 Email: CCG Elite Investor Relations Crocker
Coulson, President Tel: +1-646-213-1915/1914 (New York) Email:
DATASOURCE: Sino Gas International Holdings, Inc. CONTACT: Ms. Fang
Chen, Chief Financial Officer of Sino Gas International Holdings,
Inc., +86-10-8260-0527, or ; or Crocker Coulson, President of CCG
Elite Investor Relations, +1-646-213- 1915/1914 (New York), or ,
for Sino Gas International Holdings, Inc. Web Site:
http://www.sino-gas.com/
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