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Fri. February 06, 2009; Posted: 06:41 AM

Kashgar, Feb 06, 2009 (SinoCast Daily Business Beat via COMTEX) -- CHGY -- China Energy Development Holding Ltd. (SEHK: 0228) yesterday announced that it would spend at most HKD 10 billion acquiring a license to exploit natural gas in Xinjiang from China Era Energy Power Investment (Hong Kong) Ltd.

The Hong Kong-listed buyer plans to complete this deal via its self-owned funds and an offering of convertible bonds worth not more than HKD 9.815 billion, and then China Era Energy Power Investment (Hong Kong) is predicted to hold a 29.99-95.08% stake in China Energy Development.

Previously, China Era Energy Power Investment (Hong Kong) and China National Petroleum Corporation (CNPC), one of the country's three oil giants, entered into a cooperation agreement, upon which they will jointly explore and exploit petroleum and natural gas in west Tarim Basin, Xinjiang Autonomous Region, northwest China, after China's Ministry of Commerce (MOC) gives its nod.

The Kashi-located gas field, which is estimated to own about 26 billion cubic meters of natural gas, has not started running now, citing the announcement made by China Energy Development.

Source: www.cnstock.com (February 06, 2009)