1st Oct 2019 15:01
(Alliance News) - G3 Exploration Ltd on Monday reported a fall in half-year revenue but backed its Guizhou exploration block in China to commence test gas sales by the end 2019.
Shares in G3 were untraded in London on Tuesday afternoon, last quoted at 29.60 pence each.
In the six months to June 30, revenue fell 20% to USD11.0 million from USD13.7 million a year before, and its pretax loss widened to USD11.2 million from USD10.8 million.
G3's figures include the contribution from its subsidiary Green Dragon Gas, whose operations are now classed as discontinued.
In March, G3 declared a dividend in specie, which will give its shareholders a direct interest in Green Dragon Gas.
The company also reiterated that Green Dragon Gas is working to place a reserve-based loan which would enable it to reimburse G3 some of an existing USD270 million inter-company loan, which would then allow G3 to repay bondholders.
Looking ahead, G3 will focus on its exploration portfolio and more specifically, achieving "commercial production and thereafter farm-outs or sales". The company added that sales and farm-outs should provide shareholders with a dividend.
Chair Randeep Grewal said: "Our current portfolio in China provides a solid five-year backlog of projects. The most advanced of these, the Guizhou exploration block, is expected to commence test gas sales before the end of this year.
"We look forward to a full repayment of all our bonds in the near future which has been an operational distraction for almost two years. Once completed, we can get back on track with our long-term objectives."
By Eric Cunha; [email protected]
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