Green Dragon Gas
21 April 2015
GREEN DRAGON GAS LTD
('Green Dragon Gas' or the 'Company')
Annual Results for the year ended 31 December 2014
Green Dragon Gas, the leading independent gas producer with operations in China, is pleased to announce its audited financial results for the year ended 31 December 2014.
Highlights
Financial and Corporate
· Recurring revenue of US$33.8m, a 13% increase year on year (2013: US$29.8m)
· Cash of US$80m at 31 December 2014 (2013: US$34.6m)
· US$138m successfully raised through the issue of two bonds:
− US$50m through issue of convertible bond from GIC Private Limited
− US$88m through issue of corporate bond due 2017
· Exercise of warrants by significant shareholder raising US$42 million in net proceeds
· Admitted on the Main Market of the London Stock Exchange on 27 October 2014
Operational
Upstream
· Gross gas production of 8.2 Bcf from the GSS and GCZ production blocks
− GSS: 2.98 Bcf from GDG operated wells;
1.13 Bcf from CNOOC operated wells; and
− GCZ: 4.16 Bcf from CNPC operated wells
· 1,938 wells drilled across all blocks
− 1,595 wells within GSS and GCZ production blocks, of which 973 are online and 144 connected to gas sales infrastructure.
− 343 wells drilled across the exploration blocks GFC,GQY-A,GQY-B, GSN, GPX, GGZ
Gas Sales
· Gross gas sales of 6.0 Bcf
· Gas to Power sales of 138 mmcf
· Piped Natural Gas (PNG) sales:
− GCZ gas sales via PNG of 4.1 Bcf
− GSS gas sales via PNG of 943 mmcf
· Compressed Natural Gas (CNG) sales:
− retail station sales of 590 mmcf a 9% increase since 2013
− industrial customer sales of 42 mmcf, a 85% decrease since 2013, due to new permitting requirement by government which have been completed
2015 Outlook
· Exit rate target of 12 BCFPY (GCZ: 4 BCFPY, GSS: 8 BCFPY), a 50% increase.
· At GSS, 22 drilled wells to be completed and connected to gas sale infrastructure.
o 30 LiFaBriC well drilling programme has commenced in GSS and drilled wells expected to be connected to gas sale infrastructure. Total gas sale wells (GCZ and GSS) to increase from 144 to 214, a 49% increase.
· Coal seam 15 exploration completed and reserve certification in GCZ and GSS
· Planned execution objectives funded with US$80m cash on hand.
Note:
mmcf: millions of cubic feet
Bcf: billions of cubic feet
Randeep S. Grewal, Founder and Chairman of Green Dragon Gas commented:
'After a milestone 2014, which delivered a significant strengthening in Green Dragon Gas' position on all fronts, our focus is on continuing our strong growth trajectory during the months to come. We are building on solid foundations: the year-end saw a strong balance sheet following two successful bond issues and warrant exercise, increased cooperation with our partners based on mutually beneficial agreements, and the start of a three-pronged programme at our operations. The first includes completion of the drilled wells which is expected to result in enhanced results from our existing wells. The second is a new 30 LiFaBriC well drilling campaign which has launched on the GSS block. This is estimated to enable us to deliver an impressive 50% uplift in our production exit-rate to 12 Bcfpy by year end. Concurrently to the gas production enhancing programs, we are progressing our exploration activities within six blocks to certify reserves within them. In addition to our three-prong sub-surface plan, together with the ongoing increased investment in infrastructure by our partners, we are well positioned to reap the benefits of a strong gas price in China decoupled from oil pricing with our increasing gas sales, and of our strategic position in one of the world's most buoyant energy markets.'
-Ends-
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