Green Dragon Gas Ltd Greka Chengzhuang Block Approval (8302Q)
September 15 2017 - 1:00AM
UK Regulatory
TIDMGDG
RNS Number : 8302Q
Green Dragon Gas Ltd
15 September 2017
15(th) September 2017
GREEN DRAGON GAS LTD.
("Green Dragon" or the "Company")
Greka Chengzhuang Block Approval
Green Dragon Gas Ltd. (LSE: GDG), one of the largest independent
companies involved in the production and sale of coal bed methane
(CBM) gas in China, is pleased to announce that the China National
Development and Reform Commission (NDRC) has approved a Project
Code for the Overall Development Plan (ODP) on the Greka
Chengzhuang Block (GCZ), confirming its final approval.
State approval of the project code means that the Company can
commence the Block's ODP and further develop the acreage.
The Company has a 47% participating interest in the GCZ Block
with its 53% partner, China National Petroleum Corporation
(CNPC).
GCZ ODP highlights
- Contract area is 67 km(2) of which ODP covers an area of 33
km(2), with proved reserves of approximately 275 Bcf
- As of date, 114 wells have been drilled on the acreage. The
development plan is now being implemented by the joint management
committee and includes the drilling of an additional 147 production
wells to be drilled by yearend 2018. These wells will be targeting
both coal seam #3 & coal seam #15
- Gross production capacity is estimated to be 6.36 Bcf per year
- The development cost for GCZ will be c.US$53.80 million over
2017 and 2018. CNPC will invest US$28.51 million according to its
53% participating interest and the Company US$25.28 million based
on its 47% participating interest in the Block
- The Block is jointly operated by CNPC and the Company through
a joint management team based in Jincheng, Shanxi
Furthermore, on 31 July 2017, the Company announced that NDRC
has approved a Project Code for the Overall Development Plan (ODP)
on the Greka Shizhuang South Zaoyuan portion of the Main Block
(GSS), concluding that the ODP does not require an approval process
and only needs to be registered. This results in the drilling of an
additional 42 vertical wells and 47 LiFaBriC wells by 2020.
GCZ and GSS Blocks were both specifically mentioned within
China's 13th Five-Year Plan as being critical to domestic
production requirements.
Randeep S. Grewal, Founder and Chairman of Green Dragon Gas
commented: "We are pleased with the efficient approval procedure
being implemented by the government under its new polices to
stimulate new CBM developments. The Project Code clears the last of
the hurdles ahead of implementation of the ODP programme. The close
cooperation between CNPC and the Company is well demonstrated by
the continued timely progress of the GCZ ODP as we progress into
the active development stage of the GCZ Block. This close
cooperation has ensured monthly disbursements of profits between
the partners from these sustainable operations. I look forward to
updating the market as to its progress as we seek to increase
production from this Block into 2018."
About the Chengzhuang Block (GCZ Block)
The GCZ Block is located in the prolific Qinshui Basin with an
area of 67 km(2), approximately 20 km south of the Greka Shizhuang
South Main Block ("GSS Block"). Reservoir properties and geological
settings are similar to those found in the GSS Block. There are two
major laterally continuous shallow coal seams present throughout
the GCZ Block, namely, coal seam #3 and #15. CBM in this area is
imbedded in the coal formations at average depths, ranging from 300
m to 600 m. The Block has been in commercial production since
2010.
The Block is producing a stable cash flow, which is split in
proportion to working interest between GDG (47%) and CNPC (53% -
operator) since the completion of CNPC's cost recovery pool in
August 2015.
As per the NSAI Reserve Report of 31 December 2016, GCZ Block
has original gas in place of 275 Bcf. The Block has 14 Bcf in net
1P gas reserves, 29 Bcf in net 2P gas reserves and 51 Bcf in net 3P
gas reserves with future NPV 10 of US$116 million in 1P, US$232
million in 2P and US$376 million in 3P.
* Exchange rate used in conversion of RMB-USD is 6.90.
-Ends-
For further information on the Company and its activities,
please refer to the website at www.greendragongas.com or
contact:
FTI Consulting
Edward Westropp / Kim Camilleri / Elizabeth Burnham / Ntobeko
Chidavaenzi
Tel: +44 20 3727 1000
About Green Dragon Gas
Green Dragon Gas is a leading independent gas producer with
operations in China and is listed on the main market of the London
Stock Exchange (LSE: GDG). The Company has 559 Bcf of 2P reserves
and 2,386 Bcf of 3P reserves across eight production blocks
covering over 7,566 km(2) of license area in the Shanxi, Jiangxi,
Anhui and Guizhou provinces. It holds six Production Sharing
Agreements with strong, highly capitalised Chinese partners
including CUCBM (CNOOC), CNPC and PetroChina, and has
infrastructure in place to support multiple routes to monetise gas
production.
This information is provided by RNS
The company news service from the London Stock Exchange
END
DRLOKQDDNBKBQCD
(END) Dow Jones Newswires
September 15, 2017 02:00 ET (06:00 GMT)
G3 Exploration (LSE:G3E)
Historical Stock Chart
From Mar 2024 to Apr 2024
G3 Exploration (LSE:G3E)
Historical Stock Chart
From Apr 2023 to Apr 2024