Last checked at 15 Mar 2016 07:00
15 March 2016
GREEN DRAGON GAS LTD.
("Green Dragon" or the "Company")
China increases CBM cash subsidy 50%
Green Dragon Gas Ltd. (LSE: GDG), one of the largest independent companies involved in the production and sale of Coalbed Methane ('CBM') gas in China, reports a 50% increase, from $0.87/Mcf to $1.31/Mcf, in the level of cash subsidy to be paid per Mcf paid for CBM produced. The increase, effective 1 January, 2016, was recently announced by the Central Government of the PRC as part of the Country's 13th Five-Year-Plan ('the Plan').
The Plan reiterates the importance of CBM in China's domestic energy market and underscores the Central Government's focus on the development of a clean and low-carbon energy system that is both safe and efficient. China continues its commitment to increasing gas consumption as part of a cleaner energy mix.
The increase in the state subsidy will provide additional income for the Group and supports the continued development of the Group's extensive acreage held under its six Production Sharing Agreements with its partners CNOOC, PetroChina and CNPC.
Mr. Randeep S. Grewal, Founder and Chairman of Green Dragon Gas, commented:
"This increase is yet another demonstration of the Chinese government's continued commitment to develop domestic clean energy from Coal Beds to facilitate its objective of increasing the gas component of the energy mix. Green Dragon's CBM provides an important domestic resource which, after twenty years of the Company's efforts, is well defined, de-risked with proven technology and made even more economically favourable with this increased government contribution."
For further information on the Company and its activities, please refer to the website at www.greendragongas.com or contact:
Instinctif Partners
David Simonson / George Yeomans
Tel: +44 20 7457 2020
Citigroup
Tom Reid / Luke Spells
Tel: +44 20 7986 4000
Peel Hunt
Richard Crichton / Ross Allister
Tel: +44 20 7418 8900
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 549 Bcf of 2P reserves and 2379 Bcf 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.
END