Green Dragon Gas boss tucks into shares
Green Dragon Gas Ltd. (LON:GDG) announced that founder and chairman Randeep Grewal has acquired 5,500 shares in the company at prices between US$9.00 - 9.26 per share.
Following these purchases, Grewal has an interest in 88,311,961 shares in the Green Dragon, representing 64.61% of the company.
The consideration for his purchase yesterday ranges US$44,950 - US$51,390.
Green Dragon is one of the largest independent companies involved in the production of coal bed methane (CBM) gas and the distribution and sale of wholesale gas in China.
CBM is a type of natural gas that was trapped when coal seams formed millions of years ago. In certain parts of the world it is abundant but getting it out of the ground is a complicated business, particularly in China where coal seams are brittle and highly faulted.
Indeed the geological complexities of China's coal beds had posed an almost unsolvable puzzle. But in 2008, Green Dragon - through its recently spun-out drilling division Greka - cracked it with some clever technology called "surface-in-steam" methodology.
Now with Greka's help Green Dragon is about to embark on a huge 100-well development programme to unlock this immense potential. The US$250 capex programme is targeting an 18-fold uplift in group CBM production.
Green Dragon shares late afternoon were off a tad, 0.05p, to 9.45p
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