Sino Gas And Energy Holdings Limited (ASX:SEH) TB03 Test Completed, Mobilise to TB08

Perth, June 16, 2011 AEST (ABN Newswire) - Sino Gas & Energy Holdings Limited (ASX:SEH) is pleased to announce a stable gas flow rate of 362,000 scf/day after 14 hours flow on its TB03 Gas Discovery Well.

As part of the testing procedure, Sino Gas's testing contractor, CCDC Changqing Downhole Service Company (CCDC) flowed the well at various orifice sizes and confirmed a flow rate of 362,000 scf/day at 160 psi tubing head pressure. The flow rate at 200 psi tubing head pressure (the pressure under which flow rates on Sino Gas's previous wells are reported) was 326,500 scf/day.

The flow testing has now confirmed the potential of the additional upper zone inferred from the logs. It is intended that this well will now be put on to Pilot Production rather than hydraulically fractured to increase gas productivity in the current operation.

Sino Gas's Managing Director, Stephen Lyons said that the TB03 well result further supported the exciting potential of Sino Gas's acreage given the continued successful well testing at flow rates above commercial levels.

"The test on TB03 followed a re-interpretation of the electronic logs following successful flow rates achieved on an upper zone in the TB07 well (gas flow rate of 2,900,000 scf/day) and TB09 well (gas flow rate of 1,150,500 scf/day).

The continued successful flow rates above commercial levels are a testament to Sino Gas's sub-surface and operations team. The efficient manner in which the operations were carried out has also kept the capital costs at a minimum", said Mr Lyons.

TB08 Well - Mobilisation of test rig underway

Sino Gas's testing contractor, CCDC is now mobilising equipment to test multiple zones on the TB08 Gas Discovery Well.

In the first operation, Sino Gas is planning to hydraulically fracture stimulate an upper 'pay zone' on which a perforation and Drill Stem Test (DST) was conducted late last year.

Depending on the result of the stimulation, Sino Gas expects that it will flow back the well for around 2 weeks with further updates being provided to the market as the test proceeds.

Broadcast on Flow Testing Program

Sino Gas provides the opportunity to listen to an audio broadcast with Stephen Lyons, Managing Director of Sino Gas. In the audio broadcast, Sino Gas will discuss the impact of the Company's current testing program.

The audio broadcast can be accessed from 10:30am AEST by copying the following details into your web browser: http://www.brr.com.au/event/81655

Contact

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