Pacific Asia China Energy (TSX: PCE) said it had agreed to be acquired by Green Dragon Gas (LSE:GDG) for approximately C$35 million, or 38 cents per share. The offer price represented a premium of 58% to the closing price on the 26th March, 2008. Both Green Dragon and PACE are involved in China's emerging coal-bed methane gas industry.
Mr. Randeep S. Grewal, Chairman & CEO of Green Dragon said:
"This timely acquisition is accretive to the Company and its shareholders as we continue to
expand our operations and further enhance our position within the emerging CBM industry in China. The acquisition will provide us with complementary sets of assets to the Company's current operations. The additional 946 sq km CBM block in Guizhou provides a new focus area within the central inner China niche built by the Company to date. Furthermore, this acquisition increases our PSC acreage to 7,566 sq km making GDG the largest foreign CBM operator in China. Additionally, the Pace-Mitchell joint venture adds two Schramm rigs to the fleet of five ordered by Greka Technical Services providing commonality within rigs while enhancing the capability to drill horizontal wells. The interchangeability will ease the cross-training of personnel and optimize the rig utilization enabling the Company to capitalize on its significant drilling inventory."
PACE accepts bid from Green Dragon Gas
Published: 15:00 28 Mar 2008 AEDT