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New Times Energy Acquires Integrated LNG Utilization Project in Guizhou Province, China

Tuesday, November 13, 2012 4:58 AM


HONG KONG, Nov. 13, 2012 /PRNewswire/ -- New Times Energy Corporation Limited ("New Times Energy" or "the Company", together with its subsidiaries, the "Group", HKSE stock code: 166) is pleased to announce that it has entered into an agreement on 12 November 2012 to acquire an integrated LNG utilization project in Guizhou province, at a total consideration of approximately RMB$80 million.

The acquisition will be settled by cash and convertible bonds. After signing the agreement, the Group will pay the whole consideration in three phases. The Group will first pay RMB$35 million in cash. After the successful transfer of all project rights to New Times Energy, the Group will pay RMB$37 million including convertible bonds with a principal amount of RMB$28 million and RMB$9 million in cash during the second phase. The final amount of the second phase payment will be determined by the number of successful transfer of the project. The remaining RMB$8 million will be paid 10 working days after the completion of the whole transaction. RMB$4 million will be paid in cash and convertible bonds with a principal amount of RMB$4 million. The initial conversion price of the convertible bonds is HK$1 per share.

According to the agreement, New Times Energy will acquire operating rights to the integrated LNG project focused in Liupanshui City, Guizhou province. The project includes 15 LNG/CNG stations and gas supply to 5 industrial parks and 73,500 households. The construction of 2 out of 15 LNG/CNG stations has been completed. This acquisition is believed to generate steady cash flow for the Group in the future. In addition, an independent professional valuer indicated that the preliminary valuation of the project is HK$260 million. According to the Group's current outstanding shares, 572 million, this is equivalent to HK$0.46/share. Liupanshui City is the third largest city in Guizhou province and GDP per capital is ranked second in Guizhou province. It is the main coal production region in Southern China. The China-Myanmar gas pipeline is expected to complete construction in 2013. The pipeline will enter Guizhou province from Liupanshui City, therefore establishing significant gas source for Liupanshui City.

New Times Energy launched its first Gasification of Rural Modernization project, the Golden Land community project, in July 2012 in Huaiyin District of Huai'an city in Jiangsu province as its pilot project. Approximately 1,000 households of the phase-one community pipeline construction projects are near completion and will be put into service shortly, generating the Group's first revenue in LNG operations. In September 2012, the Group signed a strategic partnership agreement with China Petroleum Pipeline Bureau ("CPP") to jointly develop China and overseas oil and gas businesses. Through continuous efforts in the past months, New Times Energy has successfully acquired the integrated LNG Utilization Project in Guizhou province, China.

Commenting on the acquisition, Mr. Stewart Cheng, Chairman and Executive Director of New Times Energy, said, "The National Development and Reform Commission and the National Energy Administration held the 2012 National Natural Gas Conference on October 25th to analyze the development trend of natural gas and to promote the 12th Five-Year Plan for Natural Gas Development. In addition, the State Council has approved the 12th Five-Year Plan for Natural Gas Development and will focus on tasks such as to increase the supply of resources, to accelerate the construction of pipeline network and LNG receiving stations, to promote the construction of gas storage facilities, to strengthen technological advancement, to implement energy conservation and to promote project efficiency. The LNG market in China is believed to enter rapid growth period in tandem with the government's continuous effort in promoting energy conservation. Being the pioneer among Hong Kong corporations in developing projects of integrated utilization of natural gas within mainland China, New Times Energy will grasp hold of this opportunity and accelerate the Group's development and increase market shares in mainland China's LNG market. New Times Energy will continue to actively seek for additional suitable acquisitions, thus expanding the scale of the Group's LNG business."

Mr. Sun Jiang Tian, Executive Director of New Times Energy, said, "We are delighted with New Times Energy's rapid development in China's LNG market in such a short period of time. The acquisition illustrates two significant factors regarding the Group's position in the LNG market: (i) New Times Energy is fully engaged in the LNG market and has developed a LNG industry chain in targeted regions, including LNG stations and the gas supply to industrial parks and residential regions; (ii) This demonstrates the strength and efficiency of the Group's management team, which further enhances confidence in developing future LNG projects in additional provinces. In addition, the completed LNG stations in this acquisition will soon commence operation and is expected to bring steady income for the Group in the near future. LNG business will become a major revenue source for New Times Energy as projects continue to advance."

About New Times Energy Corporation Limited

New Times Energy Corporation Limited (HKSE stock code: 166) is an integrated natural resources company engaged in the acquisition, development and operation of oil & gas projects in Argentina, the USA and China. The Group's upstream oil & gas projects are located in geologically favorable regions in the Noroeste basin in the province of Salta, Formosa and Jujuy, Argentina and in the states of Louisiana, Utah and Alaska, the USA. The Group is also engaged in downstream LNG projects in China including LNG gas stations, gasification of industrial parks and rural modernization projects, etc. The Group will continue to enrich its oil & gas portfolio through strategic mergers and acquisitions and actively look for opportunities to broaden the Group's income streams, aiming to deliver significant growth in cash flow and reserves to its shareholders.

SOURCE怀New Times Energy Corporation Limited

(Source: PR Newswire )
(Source: Quotemedia)

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