Green Dragon Gas production jumps 34pct, on track for 18bcf target
Thursday, 10 May 2012
Green Dragon Gas (LON:GDG) remains on track to hit its ambitious anualised production rate target after seeing its gas output jump 34 percent to 414 million cubic feet in the March quarter.
The China focused coal bed methane (CBM) gas producer said the entire production came from the Shizhuang South block, where Greka Drilling’s LiFaBriC methodology applied to lined, faulted brittle coals continues to increase production rates.
The group has set a production rate target of 18 billion cubic feet of gas compared with the 1.5 bcf produced in 2011, which was a 150 percent increase over 2010.
As production rose, turnover increased to US$75.2 million in 2011 from US$49.7 million in 2the previous year.
The group drilled 67 wells during the year and closed 2011 with proved reserves up by five percent at 43 bcf, worth US$263 million.
Proved and probable (2P) reserve estimate by 18 percent to 307 bcf and there was a two percent rise in 3P reserves to 2,513 bcf of gas.
Exploration this year should yield sufficient results to enable another block to move into the production phase, Green Dragon said in its final results report in April.
The downstream gas retail business’ focus is now on compressed natural gas CNG distribution stations in Henan and Shanxi provinces in China, while the mid-stream business is developing CNG distribution channels in pipelines and power.