12th May 2014 11:41
LONDON (Alliance News) - Green Dragon Gas Ltd Monday said it has doubled its proven reserves to 126 billion cubic feet of gas following an independent reserve estimate by Netherland, Sewell & Associates Inc.
The coalbed methane gas producer, operating in China, said the increases for December 31, 2013, were based on roughly 1,300 wells drilled by the company's partners across its acreage.
It said that the total original gas in place for its six blocks is now 25.2 trillion cubic feet and its proven reserves increase from 59 billion cubic feet at the end of 2012 increased its proven net present value to USD898 million from USD324 million previously.
The company said the study also increased its proven and probable reserves by 22% to 382 billion cubic feet from 314 billion cubic feet with a net present value of USD2.81 billion rather than USD1.82 billion.
However, Green Dragon Gas said its proven, probable and possible reserves fell 5% to 2,382 billion cubic feet from 2,509 billion cubic feet but noted that this still increased its net present value to USD16.12 billion from USD12.68 billion.
The company announced in October 2013 that it estimates its total reserves to be 300 billion cubic feet in proven and 600 billion cubic feet in proven and probable, which it expects to realise as required infrastructure is built over the next fifteen months.
Green Dragon gas shares were up 2.6% to 555.00 pence Monday.
By Tom McIvor; [email protected]; @TomMcIvor1
Copyright 2014 Alliance News Limited. All Rights Reserved.
Related Shares:
Green Dragon Gas