Northeast China-based drilling services company, Sino Australia Oil & Gas Ltd. has postponed a proposed initial public offering in Sydney. The company, in a statement released on July 16, said, "Recent market volatility was cited as the reason Asian-based fund managers were not able to complete investment mandates".

Wayne Johnson, a Sydney-based director has said that Sino Australia Oil & Gas Ltd. initially planned to complete the offer by October 4 and start trading by October 25. The company has expectations to raise AUD15million or an estimated USD14 million, to AUD20 million, Johnson added. He also said that the company's 24 million shares will be sold at 50 cents per share.

However, Sino Australia requested an extension from the Australian Securities and Investments Commission to allow Asian fund managers more time to decide on the purchase of shares. The sale of stock in Sino Australia is for local investors to acquaint themselves with China's increasing energy demand.