4th Jan 2016 07:52
LONDON (Alliance News) - Green Dragon Gas Ltd Monday said it exited 2015 producing more gas than it originally targeted and said it will provide a full operational update in February which will also include guidance for the full year.
The Chinese gas producer was aiming to have a production rate of 12.0 billion cubic feet of gas per day as it exited 2015, but managed to beat that target by a fraction by exiting the year with a production rate of 12.1 billion cubic feet per day.
Randeep Grewal, chairman and founder of the company, said: "The 36% increase in gross production rate delivered by Green Dragon in 2015 versus 2014 reflects the company's continued focus, along with that of our partners, on the development of infrastructure and the connection of wells to the production network from the existing 1,977 drilled wells."
"The increased production rate as we enter 2016 provides an excellent foundation to deliver growth and value for shareholders from domestic China which remains one of the world's most buoyant energy markets. We are truly excited about 2016 and beyond," he added.
Green Dragon said it will provide its usual operational update and full year guidance in February which will also include a status report on the company's infrastructure as it pushes to continue increasing production and sales. The company, alongside its Chinese partners, already has infrastructure in place that supports "multiple routes" for the company to monetise its production.
"The company remains focused on delivering a step change in production, continued improvement in the sales to production ratio and resulting cash generation," said the company.
Green Dragon extracts it gas from coal seams using LiFaBriC wells, which are wells drilled using a technique developed by AIM-listed Greka Drilling Ltd. It is an adaptation of the horizontal drilling methods traditionally used for drilling in coal seam reservoirs and is designed to provide a precise and high-quality completions' technique. It was designed specifically for Chinese geology.
By Joshua Warner; [email protected]; @JoshAlliance
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