Sino Gas Intl (OTC BB:SGAS)

Re-pricing of risk premium

Excerpt from GeoBargain & Special Update - Performance Laggards Article

Sino Gas Intl (OTCBB:SGAS)

SGAS Shares have pulled back after a brief stint over $1.00. It is possible that shares came under pressure due to an S1 filing allowing certain shareholders to sell their shares. The Company did release improved 2009 third quarter results and offered an upbeat outlook. We will keep the stock coded as a GeoSpecial as it is selling under its book value per share. The stock is in an industry that seems to get little attention as evidenced by a lack of questions during the Company’s last conference call.

Going forward, Sino Gas will continue to focus on the existing projects, explore their potentials, increase the penetration rate, improve our gas distribution networks, and enhance operating efficiency and cost structure.

In the past several years, Sino Gas has strategically and geographically positioned itself in China. The company has heavily invested and built a good foundation and networks to get to the next level. The company currently operates on 35 gas distribution networks in different parts of China, including 29 with concession rights. We will continue to target good opportunities to expand into small and medium size cities, and increase our market share as capital becomes available.

As of today, Sino Gas has only developed small portion of the market we cover. We are optimistic about our future growth.

Source: 2009 Third Quarter Conference Call.

See original discussion notes.