3rd Feb 2016 08:03
LONDON (Alliance News) - Green Dragon Gas Ltd Wednesday said it plans to significantly increase its gas production, processing and sales capacity from its existing wells during 2016 in the hope that it can deliver its maiden bottom-line profit and enable capital investment to generate further growth.
The producer of coalbed methane gas in China said it is currently implementing a significant infrastructure programme with its partners aimed at increasing gas processing and sales capacity from its existing drilled wells.
Green Dragon said it aims to increase the company's gross production capacity to 16.00 billion cubic feet per annum before the end of 2016, which would represent a 33% increase on 2015.
At the end of 2015, Green Dragon's annual production capacity stood at 12.12 billion cubic feet of gas per year, slightly ahead of the company's target to have capacity of 12.00 billion cubic feet at the end of the year.
The company's gas processing capacity increased 79% year-on-year during 2015 to 22.7 billion cubic feet of gas per annum after its partner, China National Offshore Oil Corp, completed two new processing facilities.
"Our performance in 2015 is contrarian to the energy industry at large. Against a backdrop of unprecedented economic and political turmoil in the traditional energy markets and near record low oil prices, we expect to see our performance further enhanced in 2016 in terms of production, sales, profitability and cash flow, as gas pricing remains robust and consistent in China with some of the highest margins seen anywhere in the world," said Randeep Grewal, chairman of Green Dragon.
Green Dragon said China National Offshore Oil continues to move toward its target to get that processing capacity up to 53.00 billion cubic feet of gas per year by 2017.
"The aggressive build out of the gathering network and the associated gas processing capacity to 2.00 billion cubic feet per annum by our partner, CNOOC, means there are no capacity constraints on our current or planned production," said Grewal.
"Further processing capacity is scheduled to come on line progressively over the next 12 to 24 months, in line with production growth, to reach the ultimate targeted gas sales capacity," he added.
Green Dragon said the work to be carried out in 2016 will enhance the company's cash flow generation, which will result in both the delivery of its maiden bottom-line profit and enable capital investment to generate further growth.
"2016 is Green Dragon's tenth anniversary as a listed company and we expect it to be our best operational and financial performance since inception twenty years ago," said Grewal.
By Joshua Warner; [email protected]; @JoshAlliance
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