Production Update

RNS Number : 6364K

Green Dragon Gas Ltd

04 January 2016

 

4 January 2016

GREEN DRAGON GAS LTD.

("Green Dragon" or the "Company")

2015 Exit Production Rate Exceeds 12.0 BCFPY Target

Green Dragon Gas Ltd. (LSE: GDG), one of the largest independent companies involved in the production and sale of CBM gas in China, is pleased to announce that it has exceeded its 2015 year end exit rate gross production target of 12.0 BCFPY by delivering an actual 2015 exit rate of 12.12 BCFPY.

In addition, and remaining consistent with previous years, the Company intends to make a full Operations Update in early February. The Operations Update will provide operational guidance for 2016 and will include a comprehensive status report on progress made on the Company's infrastructure for continued increases in production and gas sales.  The Company remains focused on delivering a step change in production, continued improvement in the sales to production ratio and resulting cash generation.

Randeep S. Grewal, Chairman and Founder of Green Dragon, commented:
 

"The 36% increase in gross production rate delivered by Green Dragon in 2015 versus 2014 reflects the Company's continued focus, along with that of our partners, on the development of infrastructure and the connection of wells to the production network from the existing 1,977 drilled wells. The increased production rate as we enter 2016 provides an excellent foundation to deliver growth and value for shareholders from domestic China which remains one of the world's most buoyant energy markets. We are truly excited about 2016 and beyond."

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

Instinctif Partners

David Simonson

Tel: [phone]

Citigroup

Tom Reid / Luke Spells

Tel: [phone]

Peel Hunt

Richard Crichton / Ross Allister

Tel: [phone]

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 380Bcf of 2P reserves and 2,418Bcf of 3P reserves across eight production blocks covering over 7,566km² of licence 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.

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