Issue of Equity

RNS Number : 3539X

Green Dragon Gas Ltd

03 December 2010

 



3 December 2010

GREEN DRAGON GAS LTD

("Green Dragon Gas" or "the Company")

USD 102.8 million Share Placement

Green Dragon Gas Ltd. (AIM: GDG), one of the largest independent companies involved in the production of CBM gas and the distribution and sale of wholesale gas in China, is pleased to announce that it has raised USD 102.8 million (before expenses) through the issuance of 8.8 million new ordinary shares to institutional funds. The new shares were placed by CLSA Limited at USD 11.68 per share.

The Company intends to use the net proceeds from the placement to acquire 25 additional drilling rigs as previously announced on 8th November, 2010. The delivery of the rigs is expected to be completed by the end of 2011 and will accelerate the Company's SIS drilling program in the Shizhuang South ("GSS") block.

Application has been made for the 8,800,000 new ordinary shares to be admitted to trading on AIM and this is expected to become effective on 9 December 2010. Following the issue of the new shares, the Company's issued share capital consists of 129,332,336 new ordinary shares of USD 0.0001 each. The Company does not hold any shares in Treasury therefore the total number of voting rights in the Company is 129,332,336.

Randeep S. Grewal, CEO and Founder, commented:

"The Company's upstream asset base continues to perform in line with our expectations and currently exceeds our year end exit production target of 1 Bcf for 2010. More successful SIS wells have been drilled according to plan and placed on-line. The addition of the new drilling fleet will allow the Company to meet its established targets. Following the successful conclusion of this placement and the resulting rig capacity increase, management will focus on fine tuning our drilling efficiency so as to enable materially more SIS wells to be drilled quicker at our Shizhuang South (GSS) Block in 2011 and beyond."

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

Stephen Hill, VP Corporate Communications Green Dragon Gas	[phone]
Dr Azhic Basirov / David Jones Nomad & Broker, Smith &Williamson	[phone]
Robert Collins / Tim Redfern Broker, Evolution Securities	[phone]
Judith Rawnsley Broker, CLSA	[phone]
James Henderson, Investor Relations, Pelham Bell Pottinger	[phone]

 

END

 

 

IOELXLFBBLFFFBD