24th Feb 2015 09:18
LONDON (Alliance News) - Green Dragon Gas Ltd Tuesday said its estimated reserves and the value of its projects has increased significantly, following an independent review carried out by Netherland Sewell and Associates Inc.
Green Dragon is a China-focused company involved in the production of coal bed methane gas and its distribution and sale, with six producing projects over four Chinese provinces.
The company said net 1P reserves have increased by 17% to 147.8 billion cubic feet of gas, leading to the net present value of its 1P reserves rising to USD1.46 billion from the previous value of USD897.9 million.
Net 2P reserves have increased by 12% to 426.8 billion cubic feet of gas, increasing the net present value of the 2P reserves to USD4.3 billion from USD2.8 billion.
Net 3P reserves fell by 4% to 2.28 trillion cubic feet of gas, but the company said the net present value has increased to USD21.18 billion from USD16.12 billion as reported in its previous reserve update.
Green Dragon said the reserve update has provided the company with its ninth consecutive upgrade in 1P and 2P reserves volumes and valuations.
"I am pleased to be able to announce the ninth consecutive reserve upgrade in as many years. In addition to a substantial increase in our 1P and 2P numbers, further confirming the tremendous potential of our assets, the company has also delivered a significant increase in the valuation of our reserves," said Chairman and Founder of the company, Randeep Grewal.
"This reflects our unique position in the sector, benefiting from strong, stable gas pricing de-coupled from Brent, in what is one of the fastest growing gas markets in the world," he added.
Green Dragon shares were up 8.3% to 390.00 pence per share on Tuesday morning.
By Joshua Warner; [email protected]; @JoshAlliance
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