G3 Exploration Reports Reserve Estimates Ahead Of Hong Kong Spin Off

LONDON (Alliance News) - Coal bed methane company G3 Exploration Ltd on Monday reported its ...

Alliance News 16 April, 2018 | 2:08PM
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LONDON (Alliance News) - Coal bed methane company G3 Exploration Ltd on Monday reported its reserve estimates ahead of spinning out its main producing assets into a new company which will be listed in Hong Kong.

Blocks GSS and GCZ in the Qinshui Basin, China, which are to be spun off under the new company which will be named Green Dragon Gas and collectively have 1,453 wells drilled, contain proven reserves of 91.5 billion cubic feet with a net present value at a 10% discount rate of USD440.5 million.

Meanwhile the remaining blocks which will remain under G3 have proven reserves of 5.2 billion cubic feet, at a net present value of USD33.7 million, collectively containing 335 drilled wells.

"The GGZ Block is progressing well towards development, with first gas anticipated this year as planned. Once in production, the GGZ block will be the next asset to be ring-fenced for sale, farm-out or a dividend in specie, as per producing blocks, GSS and GCZ which are presently planned to be included in the Hong Kong IPO of GDG," said Chairman Randeep Grewal.

"Our continued primary focus is to explore and develop our remaining exploration blocks and dis-risk the development profile across our vast acreage with our partners CNOOC, CUCBM, CNPC and PetroChina," Grewal added.

Shares in G3 Exploration were untraded on Monday, last quoted at 56.63 pence.

By Dayo Laniyan; dayolaniyan@alliancenews.com

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Securities Mentioned in Article
Security Name Price Change (%) Morningstar
Rating
G3 Exploration Ltd 37.90 GBX 0.00 -
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