Sign up Australia
Proactive Investors - Run By Investors For Investors

Green Dragon Gas Ltd 'confident of string of successes'

2016 was an auspicious year for China-focused coal bed methane producer Green Dragon Gas Ltd (LON:GDG).

Founder, chairman and chief executive officer Randeep Grewal talks Proactive Investors through the highlights of a year in which the company has started to reap the rewards of its hard work.

With the company’s maiden profit under its belt in 2015, Grewal said: “What we’re truly focused on is completing what we have started, so this is our year to … start monetising the returns that we’ve been working so hard to do over the last 20 years.”

Green Dragon had eight exploration blocks and two in production, and one of the targets at the start of the year was to move a third block from exploration into development, and this was achieved last month with the Guizhou block.

Asked whether the company is being affected by the rocky ride for commodities this year, Grewal replied: “The beautiful thing about working in China is, we’re not.”

The decline in the value of the Chinese currency in dollar terms has had a bit of an effect, “but when it comes to commodity prices, certainly we’ve seen a bit of a down-take in terms of energy prices in China, but the government’s been … very creative and constructive. They’ve doubled our subsidy and essentially offset that change in pricing.”

“Again, the benefit of working in China is that it provides us with stability, and we really enjoy that,” Grewal said.

Green Dragon has applied for approval of the Chinese Reserve Report for Guizhou from the Ministry of Land Resources, which is a precursor to approval of the overall development plan (ODP) and expected to come through in 2017.

“Our doors are wide open to invite a partner in, because we do see that as a farm-out block,” Grewal disclosed.

A “solid partner” who is interested in domestic gas production in China is the company’s preferred funding option for development of the block.

Grewal also talked about GSS 008, which has been in production since 2008, describing it as “the gift that keeps on giving”.

“I think it is a great example of the potential of the LiFaBric technology,” Grewal asserted. LiFaBric is the technology the company developed for tapping into unconventional gas sources in China.

“We’ve truly mastered producing gas, without a drop of chemical, without frakking, in highly faulted coals. GSS is the first of many LiFaBric wells.

“It is the beginning of a string of successes,” the Green Dragon founder promised.

 
Meet Tower Resources PLC, Arc Minerals Limited, Carbon Tracker and Tekcapital PLC at our event, London , 31 May 2018. Register here »
View full G3E profile View Profile

G3 Exploration Limited Timeline

No investment advice

The information on this Site is of a general nature only. It does not take your specific needs or circumstances into consideration, so you should look at your own financial position, objectives and requirements and seek financial advice before making any financial decisions. You acknowledge and understand that neither the Company, its related bodies corporate, the information providers or their affiliates will advise you personally about the nature, potential value or suitability of any particular security, portfolio of securities, transaction, investment strategy, or other matter. You should read our FSG and any other relevant disclosure documents and if necessary seek persona advice prior to making any investment decision.

You understand and agree that no Content (as defined below) published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is suitable or advisable for any specific person.

You understand that in certain circumstances the Company, its related bodies corporate, the information providers or their affiliates may have received, or be entitled to receive, financial or other consideration in connection with promoting, and providing information about, certain entities on the Site and in communications otherwise provided to you.

You understand that price and other data is supplied by sources believed to be reliable, that the calculations herein are made using such data, and that neither such data nor such calculations are guaranteed by these sources, the Company, the information providers or any other person or entity, and may not be complete or accurate. From time to time, reference may be made in our marketing materials to prior articles and opinions we have published. These references may be selective, may reference only a portion of an article or recommendation, and are likely not to be current. As markets change continuously, previously published information and data may not be current and should not be relied upon.

Before you act on any general advice we provide, please consider whether it is appropriate for your personal circumstances.

© Proactive Investors 2018

Proactive Investors Australia PTY LTD ACN:132787654 ABN:19132787654.

Market Indices, Commodities and Regulatory News Headlines copyright © Morningstar. Data delayed 15 minutes unless otherwise indicated. Terms of use