Green Dragon Gas
Green Dragon is the parent company of Greka China, and is exclusively focused in gas industry in China. Green Dragon operates within China under its subsidiary Greka China Green Dragon is a gas supplier based in China with a focus on the production, development, production, distribution and sales of natural gas from coal seams, commonly known as coal bed methane or CBM.
Green Dragon Gas is a sponsor of this site. Proactive Investors guarantees coverage of all sponsor news announcements from an investor view-point. For an in-depth analysis of Green Dragon Gas, click here.
Green Dragon Gas signs farm out agreement with ConocoPhillips on Chinese Coal-Bed Methane acreage
Shares in vertically integrated gas business Green Dragon Gas (AIM: GDG) perked up this morning after the company announced a farm-out agreement for its coal-bed methane interests in China with US heavyweight, ConocoPhillips (NYSE: COP).
Under the agreement, ConocoPhillips will make an initial payment of US$20 million to Green Dragon's subsidiary, Greka, and will fund up to a total of US$30 million of capital expenditure on the development of surface-to-inseam wells at the Shizhuang South, Shizhuang North and Qinyuan Production Sharing Contracts (PSC) before the end of 2010.
ConocoPhillips will also have an option to continue into a second phase development plan by paying US$120 million to acquire 50% of Greka's interest in three of its six Chinese Coal Bed Methane PSCs. In addition, ConocoPhillips has an option until mid-2011 to evaluate participating in Green Dragon's other midstream and downstream businesses.
Greka will continue to be the operator of the blocks while ConocoPhillips will appoint personnel to the projects and enhance the PSC development scale and efficiency through their extensive CBM experience, Green Dragon added.
"It has been exactly three years since we listed on the AIM market and this agreement with ConocoPhillips is an important validation of the Company's continued success. ConocoPhillips is a significant producer of CBM with substantial production experience which we believe will add value in monetizing our large resource expeditiously. ConocoPhillips acceptance of Greka as operator further validates the capability of our operating team and its achievements to date," commented Randeep Grewal, Chairman & CEO of Green Dragon Gas. "The ConocoPhillips agreement coincides with the Overall Development Plan approval which we expect to receive this quarter on our most advanced Shizhuang South block. The ODP has been extensively vetted and will provide relevant guidance to expedite the ODPs on the Company's other five blocks."
Other Green Dragon Gas news
- Green Dragon’s Grewal speaks at prestigious Chinese conference
2011-08-31 - Green Dragon Gas chairman Grewal appointed to provincial gov't board in China
2011-08-03 - Green Dragon Gas says Chinese CBM contracts remain in ‘full force and effect’
2011-03-12 - Enter the Dragons: China's coal bed methane specialist prepares to do the splits
2011-02-16 - Green Dragon Gas to move ahead with Hong Kong IPO
2010-11-09
