Perth-based advisory and stockbroking firm Argonaut has been appointed by Sino Gas and Energy Holdings as its corporate advisor.

In connection with the appointment, Argonaut will receive 30 million options, exercisable at 7.5 cents on or before five years from the date of issue.

Sino Gas said Argonaut would assist it pursuit of non-dilutive financing opportunities to progress its exploration projects towards development.

Sino Gas’ main assets are located in China’s Shanxi province, covering an area of 3,000 kilometres in the Ordos Basin, China’s second largest onshore oil and gas producing area.

The company has drilled a total of 15 wells in the basin as it looks to ramp up exploration efforts.

“As we approach the development phase of these significant projects it is entirely appropriate to identify and develop strategic funding mechanisms that will ensure timely and effective delivery, Sino Gas executive chairman Gavin Harper said.

Sino Gas and Energy shares were up 6.7 per cent at 10:14AM WST, trading at 6.4 cents.