Transaction in Shares

RNS Number : 0644M

Green Dragon Gas Ltd

11 July 2014

 



11 July 2014

GREEN DRAGON GAS LTD

("Green Dragon" or the "Company")

Green Dragon Gas Ltd. (AIM: GDG), one of the largest independent companies involved in the production and sale of Coal Bed Methane (CBM) gas in China, has been notified by GDGH II Ltd (controlled by Randeep S. Grewal, Green Dragon's Chairman and CEO), and by Mandolin Capital PTE. Ltd (controlled by Chandler Corporation), that together, they intend to sell (in equal proportions) approximately 2-3 million of their existing shares in the Company (the "Offer").

It is intended that the Offer should assist in increasing the trading liquidity of the Company's shares.  In addition, the Offer would help increase the free float and therefore make progress towards meeting the requirements of a move from AIM to a Standard segment listing on the Main Market of the London Stock Exchange, which the Company is currently considering.

As previously announced, in December 2013, the Company entered into a binding Memorandum of Understanding with PetroChina Company Ltd ("Petrochina") regarding the Company's participating interests in the Chengzhuang block.  The Company will provide further details on the cooperation with Petrochina in due course.

In April 2014 the Company entered into a binding framework agreement with China United Coalbed Methane Corporation ("CUCBM"), a subsidiary of China National Offshore Oil Corporation ("CNOOC") regarding five of its Production Sharing Contracts (PSCs) in China.  The Company can report that three joint management committee meetings have taken place between the parties as stipulated in the agreement.  These meetings will continue on a monthly basis and work regarding future drilling plans and infrastructure expenditure is progressing according to plan.

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

"Requests for additional trading liquidity in the shares have been a consistent theme in our discussions with investors and our objective is that this offering will contribute to addressing those requests as well as increasing the company's free float, thereby making progress towards meeting one of the requirements for a Standard segment listing on the London Main Market.  I am a strong believer in Green Dragon Gas, which is well-positioned following the signing of the agreement with CNOOC and PetroChina, and I expect to remain a major shareholder in the Company for the long term."

Following completion of the Offer, GDGH II Ltd will be subject to a lock-up of 90 days in respect of its remaining shareholding in the Company (subject to customary exceptions).

Credit Suisse Securities (Europe) Limited ("Credit Suisse") has been appointed as Sole Bookrunner for the Offer.

The books for the Offer will open with immediate effect. The timing of the closing of the books will be at the absolute discretion of Credit Suisse, GDGH II Ltd and Mandolin Capital PTE. Ltd.

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]
Dr Azhic Basirov / David Jones / Ben Jeynes Smith &Williamson - Nomad & Broker	[phone]
Steve Baldwin / Nicholas Harland Macquarie Capital (Europe) - Broker	[phone]
Richard Crichton / Andy Crossley Peel Hunt - Broker	[phone]
James Henderson / Philip Dennis Bell Pottinger - Investor Relations	[phone]

This announcement contains (or may contain) certain forward-looking statements with respect to certain of the Company's and/or its shareholders' plans and its current goals and expectations relating to its future financial condition and performance and which involve a number of risks and uncertainties. The Company cautions readers that no forward-looking statement is a guarantee of future performance and that actual results could differ materially from those contained in the forward-looking statements. These forward-looking statements can be identified by the fact that they do not relate only to historical or current facts. Forward-looking statements sometimes use words such as "aim", "anticipate", "target", "expect", "estimate", "intend", "plan", "goal", "believe", or other words of similar meaning. Examples of forward-looking statements include, among others, statements regarding the Company's future financial position, income growth, impairment charges, business strategy, projected costs, estimates of capital expenditure  and objectives for future operations of the Company and other statements that are not historical fact. By their nature, forward-looking statements involve risk and uncertainty because they relate to future events and circumstances, including, but not limited to, the conclusion of any final agreements (and the terms thereof) with Petrochina with regard to the Company's participating interests in the Chengzhuang block, any adverse development affecting its properties or the PSCs that could have a material effect on the Company, future reserve and production levels, economic and business conditions in the PRC and globally, the effects of continued volatility in credit markets, market-related risks such as changes in interest and exchange rates and commodity prices, the policies and actions of governmental and regulatory authorities, changes in legislation, the further development of standards and interpretations under International Financial Reporting Standards ("IFRS") applicable to past, current and future periods, evolving practices with regard to the interpretation and application of standards under IFRS, the outcome of pending and future litigation or regulatory investigations, the success of future acquisitions and other strategic transactions and cooperation agreements and the impact of competition - a number of which factors are beyond the Company's control. As a result, the Company's actual future results may differ materially from the plans, goals, and expectations set forth in the Company's forward-looking statements. Any forward-looking statements made herein by or on behalf of the Company speak only as of the date they are made. Except as required by the Financial Conduct Authority, the London Stock Exchange or applicable law, the Company expressly disclaims any obligation or undertaking to release publicly any updates or revisions to any forward-looking statements contained in this announcement to reflect any changes in the Company's expectations with regard thereto or any changes in events, conditions or circumstances on which any such statement is based.

 

END

 

 

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