what do sinogas know ?

I suppose what confuses people is they cannot understand what "tight gas" is.

They think drilling a well and hitting gas is "wonderful" - well..........

In a tight gas area like this you can drill a well anywhere and strike gas, as CAMAC did 4 times.

Its just in general you need a license in the "central" area of the accumulation (like Sinogas) as these are less tight.

As you get to the edges of the formation its gets much much tighter to the point where flow is too low and drainage area is tiny.

If Sinogas are getting on average "2 BCF" recoverable gas per well in the "sweet spot licenses" then image how much gas a well in a distal license area will recover ? 0.2 BCF ? 0.5 BCF ? 1 BCF ?

This is why you see Sinogas doing ok and so far this more distal location area license failing for CAMAC and possibly in future for LRL if they suffer from this distal area being too tight and therefore unable to drain more than a small area.

Why did Sinogas appear not to want to buy this licenses ? And why did a Gold Mining company buy it for a few million dollars and some shares ?

I'd be very interested in hearing why Sinogas did not bother buying it........... but I doubt they would ever comment.