Exercise of Warrants for a consideration of $43m

RNS Number : 1056A

Green Dragon Gas Ltd

18 December 2014

 

18 December 2014

GREEN DRAGON GAS LTD

("Green Dragon" or the "Company")

Exercise of Warrants for a consideration of USD 43 million

Green Dragon Gas Ltd. (LSE: GDG) announces that the Company has received GBP 27,129,000 (USD 42,592,000) and issued 13,756,000 shares to the Chandler Corporation, following the exercise of 13,756,000 warrants ("the Warrants"). The Warrants were issued in June 2013 at market with an exercise price fixed at GBP 1.97216 concurrent with the disposal of downstream distribution assets that were deemed non-core to the growing upstream production assets of the Company.

The New Ordinary Shares will rank pari passu in all respects with the existing ordinary shares. Following the issue of the New Ordinary Shares, the Company's total share capital will be 156,072,289 shares.

Mr. Randeep S. Grewal, Founder and Chairman commented;

"We appreciate the continued support and confidence of our significant shareholder, Chandler Corporation. This capital further enhances the balance sheet and provides added capital for drilling gas production wells in our prolific commercial GSS and GCZ blocks, as well as continued exploration activities on the other six blocks.

In accordance with our guidance, we conclude the year with over USD 80m in cash, total debt of USD 138m which is all due in 2017. A robust balance sheet that funds our continued expansion in 2015. While the sector is under pressure with dropping oil prices, our de-coupled gas prices continue to be as forecasted, providing a predictable capex programme. We are indeed excited about 2015."

For further information on the Company and its activities, please refer to the website at www.greendragongas.com or contact:

Stephen Hill, VP Corporate Finance Green Dragon Gas	[phone]
David Simonson / Anca Spiridon Instinctif Partners - Investor Relations	[phone]
Tom Reid / Luke Spells Citigroup - Corporate Broker	[phone]
Sarah Wharry / Richard Redmayne Cantor Fitzgerald Europe - Corporate Broker	[phone]
Richard Crichton / Andy Crossley Peel Hunt - Broker	[phone]

About Green Dragon Gas

Green Dragon is an onshore China focused upstream (Exploration & Production) company, concentrating on its core asset value proposition over eight blocks, two of which are producing. The Company's blocks are located within six Production Sharing Contracts across four Provinces: Shanxi, Anhui, Jiangxi and Guizhou.

 

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