Green Dragon Share Discussion Threads

[wiseacre] 16/10/2013 15:44

On the 4th October I published an explosive dossier on Green Dragon Gas (GDG) which contained photos of environmental destruction and bloodied Chinese villagers. The company had been passed the dossier 5 days earlier for comment and its spokesman (Mr Philip Dennis of uber expensive PR firm Bell Pottinger) promised a response on 4th October. There has been no comment.

You can read that article HERE

Green Dragon - a perennial loss maker kept going only by rounds of financings - did issue a release on 8th October which it headlined "significant drilling development." Hmmmm it was actually a bit confusing and only left me wondering exactly how the Chinese system of title actually works. Critic ally the company concluded that it was, on the pretext of analysing new data, suspending aggressive drilling. I say "Noodles to you" Green Dragon.

The reason Green Dragon is curtailing aggressive drilling is that it has a bit of a cash issue. Cash at 20th June was $20.7 million. In the first half the operating loss was $8.3 million while exploration costs (that would be aggressive drilling) were $21 million. Do your maths – there is a very good reason capex has been curtailed: Green Dragon cannot afford to fund it.


At some stage very soon Green Dragon will be trying to raise fresh funds to keep the show on the road. At 264p the market capitalisation is a totally unjustifiable £360 million: remember this company has racked up loss after loss for 5 years and is running out of cash.

AND IT REFUSES TO COMMENT – AS IT PROMISED IT WOULD – ON THE DOSSIER BELOW.

Come on Green Dragon, come on Bell Pottinger – why the silence? Should we assume that all the allegations in the shocking dossier are true since you have declined to comment on this once having had more than two weeks to do so? Over to you

Why do I mention Greka Drilling (GDL)? Simply because:

a) it shares the same CEO with Green Dragon
b) right now almost all if not all of its business comes from Green Dragon.

It strikes me that if as at October 1 Green Dragon has - and I quote –"suspended aggressive drilling" that is a fact that Greka should be flagging with investors. Instead in its trading statement issued today it blathers on about metrics in the three months to 30th September (which seems to show a Q on Q decline in metres drilled) and then says that expectations for the fourth quarter are unchanged.

Go figure – surely that cannot be the case.

It is not as if there could be any miscommunication between the two companies as they share a CEO, Nomad, broker and PR firm. How cosy.

Now about that dossier...chaps either with your Green Dragon or your Greka hat on would you care to comment yet? In case you have lost the link:
- See more at:

[phoenix1234] 16/10/2013 08:34

more on the dossier

www.shareprophets.advfn.com/views/2012/green-dragon-greka-drilling-why-no-relevant-statement

[wiseacre] 08/10/2013 12:09

My understanding is that since the new government took office in August all licences are under review. This company which has never made a profit looks vulnerable and today's announcement is an obfuscation. A warning to suckers.

[stockologist] 08/10/2013 10:16

http://www.moneyweek.com/investment-advice/penny-shares/penny-sleuth-why-i-dont-buy-chinese-stocks-on-aim-60618

Why I don't buy Chinese stocks on AIM

By Tom Bulford

Sep 18, 2012


Greg Rudd, the brother of the former Australian prime minister, once met a Chinese businessman who gave him some prudent advice.

"You tend to see the good in people, Mr Rudd", he started. "People like you. You laugh a lot. But you'll never make money in China with that attitude. You'll only be taken advantage of. People will trade off you. They won't pay you. The number one rule of doing business in China is this; never trust a Chinaman. Why would you as a foreigner trust a Chinese businessman when we as Chinese don't trust each other?"

Now that advice is pretty close to the bone. But I've said it before in Penny Sleuth – you have to be very careful when you invest in a Chinese company. The record of AIM-listed Chinese companies is simply awful. And with so many still coming to market, there is a real chance that many private investors will end up making some very expensive mistakes...

[stockologist] 08/10/2013 10:15

Cast of thousands on that RNS

Do they really need so many to pump and promote this p.o.s ?

[scrutable] 08/10/2013 10:03

Tuesday 08 October, 2013
Green Dragon Gas Ltd
Significant Drilling Development
RNS Number : 9741P
Green Dragon Gas Ltd
08 October 2013


8 October 2013


GREEN DRAGON GAS LTD
("Green Dragon" or the "Company")

Significant Drilling Development


Green Dragon Gas Ltd. (AIM: GDG), one of the largest independent companies involved in the production and sale of CBM gas in China, is pleased to announce that following the reissue of the licences in July 2013, the Company has discovered that a number of wells were drilled on five of its six PSC blocks pre July 2013 by a number of Chinese CBM gas companies (the PSC in Guizhou was not the subject of such drilling). As stated in the Company's announcement on 10 July 2013, the Chinese government has reissued the licences covering the Shizhuang North (Shanxi), Qinyuan (Shanxi), Fengcheng (Jiangxi) and Panxie (Anhui) exploration blocks, as well as the commercial production block Shizhuang South (Shanxi). The Company believes that revenue and reserves from the wells drilled by these companies will accrue to the benefit of Green Dragon.

The Company has been in continuous dialogue with the PRC Government and its controlled entities China National Offshore Oil (CNOOC), CNPC, PetroChina and China United Coalbed Methane Corporation (CUCBM) regarding their drilling activities across the Company's PSC blocks. Through such communications, it has been revealed that these companies drilled a total of c. 1,500 wells across these blocks. The Company has requested from these entities, as well as from the Ministry of Land and Resources, all information pertaining to these wells. Of the c. 1,500 wells drilled, it is estimated that c.1,300 have been drilled across the Company's Shizhuang South PSC (GSS), whilst the others have been drilled on the four other exploration blocks. The Company has been informed that capital expenditure on these 1,500 wells exceeds US$500 million.

Once the Company is in receipt of the information requested, in accordance with its annual practice, an independent evaluation of the material accretive impact to the 1P, 2P and 3P reserves will be conducted and the results disclosed. The invested capital will also be audited and may be subject to the terms of the PSCs for cost recovery.

The Company's licences on the impacted five PSC's cover an area of 6,620 sq km and its operational focus has been to concentrate on proving up certain distinct areas of these licences. Consequently, the information about the scale of these third party wells only came to light as a result of the reissue of the licences and the subsequent on-going dialogue.


Randeep S. Grewal, Chairman and Founder of Green Dragon, commented:

"Our compliance with the contractual terms and adherence to Chinese law and confidence in the Central Government was boosted by the re-issuance of the exploration licenses in July 2013. Significantly, these licences were backdated to account for the continuous period of the PSCs, re-confirming that they were indeed in full force and effect. We have been steadfast in this position since inception.

However, we have been over-whelmed by the discovery of the number of the wells drilled. Whilst we had previously given notice of PSC violations to CUCBM for the wells they drilled on Green Dragon's blocks, we were unaware of the extent of their actual activity as well as that of CNOOC, CNPC and PetroChina. Our field teams are diligent in the concentrated areas where we explore, develop, produce and sell the CBM in accordance with the terms of our PSCs. It is impossible to be vigilant over the entire 6,620 sq km (1,635,837 acres) of licence area. Once all the information is received as required by the re issuance of these licences, we will quantify the effect on our production, reserve progression and revenue. We expect the accretive impact to be material in each of these categories. Furthermore, until such information is ascertained, we will prudently suspend any aggressive drilling campaign or related financings, so as to absorb all of this material information. Additionally, our experienced technical staff will also account for the well type drilled in these campaigns and we will adjust our efficient and proven LiFaBriC wells patterns to accommodate the findings.

We are committed to amicably concluding the material impact within our PSC areas in various aspects and look forward to capitalizing on this accelerated development to significant commerciality. However, we stand ready to enforce our PSC rights in the event there is any procrastination on such a mutually beneficial conclusion."


For further information on the Company and its activities, please refer to the website atwww.greendragongas.com or contact:

Stephen Hill, VP CorporateCommunications
Green Dragon Gas
[phone]
Dr Azhic Basirov / David Jones
Smith & Williamson - Nominated Adviser & Broker
[phone]
Steve Baldwin / Nicholas Harland
Macquarie Capital (Europe) Limited - Broker
[phone]
Richard Crichton / Andy Crossley
Peel Hunt - Broker
[phone]
James Henderson / Phillip Dennis
Pelham Bell Pottinger - Investor Relations [phone]

[the esk] 23/9/2013 07:25

nterim results for the six months ended 30 June 2013

Green Dragon Gas Ltd (AIM: GDG), one of the largest independent companies involved in the production of CBM gas in China, is pleased to announce its unaudited interim results for the six months ended 30 June 2013.

FINANCIAL HIGHLIGHTS

-- Revenue of US$6.9m (US$3.5m in H1 2012), a 98% increase
-- Net profit of US$9.4m, including gain from disposal (loss of US$10.5m in H1 2012)
-- Raised US$100m through:
o Sale of non-core assets for US$65m

o Issue of US$35m bond with warrants

-- Increased balance sheet strength through early repayment in full with interest of all outstanding Convertible Bonds (US$85.3m)

-- E&P capex of US$21.0m (US$34.3m in H1 2012)
-- Cash of US$20.7m (US$40.0m at 31 December 2012)
-- 1P reserves increased 37% and 2P reserves increased 2%
OPERATIONAL HIGHLIGHTS

Upstream

-- Gas production in H1 2013 was 1.34 Bcf (37.8 million cubic meters), a 59% year on year increase

-- Quarter on quarter growth of 8.3% achieved in Q2 2013 with production of 697MMcf (19.8 million cubic meters) compared with 644MMcf (18.3 million cubic meters) in Q1 2013

-- 3 LiFaBriC wells accepted at the Company's production block in Shizhuang South (GSS) and 4 LiFaBriC wells accepted at the Company's five exploration blocks

-- The total number of LiFaBriC wells across all blocks now stands at 67, a 66% increase on a year earlier

-- Re-issue of exploration permits by the Central Government
Downstream

-- PNG (Piped Natural Gas) sales were 218MMcf (6.18 million cubic meters) in Q2 2013, a 29% increase on the Q1 2013 (169 MMcf / 4.8 million cubic meters)

-- CNG station sales were 129 MMcf (3.676 million cubic meters) in Q2 2013, a 7% increase on Q1 2013 sales (121 MMcf / 3.441 million cubic meters) / a 71% increase over Q2 2012 (76 MMcf / 2.152 million cubic meters)

-- A total of 8 retail CNG stations completed, 6 of which were in operation compared with 5 a year earlier

Greka Engineering and Technology Ltd (GET)

-- Effective 1 January 2013, GET assumed the gas processing, transmission and power generation functions at the Integrated Production Facility (IPF). These activities are conducted on a per cubic meter delivered basis under a long term contract

-- GET continued to build its infrastructure by adding 2km of gas gathering pipeline in the first half. A total of 33km of well gas gathering pipelines are installed at GSS and operated by GET

-- GET added 14 additional third party customers for its various products during the 1H 2013, a 21% increase over the year end of 2012 and now has 90 external customers

-- Demerger of GET aimed at maximizing potential of this business and shareholder value
OUTLOOK

-- GET dividend in specie planned for 30 September 2013
-- Conclude financing for capex to execute the 18Bcf annual gas production exit target for 2014
-- Continue reserve progression and production within all six CBM blocks with specific attention to GSS

Commenting, Randeep S. Grewal, Chairman and CEO of Green Dragon Gas, said:

"The significant increase in revenue is a reflection of many years hard work and the Company's successfully transformation from exploration to production, revenues and cashflows. It is also a function of our successful strategy of streamlining the business to focus increasingly on pure upstream operations.

In view of the significant funds spent over the last decade across our six blocks, we have been committed to protecting the shareholders interest in our entitlements within our bi-lateral PSC's, which form the material assets of the Company. As confirmed by us repeatedly, our six PSC's continue in full force and effect.Questions raised over the Company's title to its PSC's have been an unwelcome distraction for both management and investors over the last few years. It has also had a significant impact on the Company's valuation which dropped by approximately US$1 billion and remains well below the levels seen prior to these concerns arising, despite significant operational progress having been made in that time.

We welcome and look forward to refocusing our efforts on growing the business to our targeted 18Bcfpy gas production and market attention returning to the significant value we believe is inherent within the business."

[the esk] 15/7/2013 10:46

GREEN DRAGON GAS LTD
("Green Dragon" or the "Company")

Operations Update: First Half Gas Production increases 59% Year on Year

Green Dragon Gas Ltd. (AIM:GDG), one of the largest independent companies involved in the production of CBM gas and the distribution and sale of wholesale gas in China, is pleased to announce an operations update. Green Dragon is committed to being a focused upstream (E&P) company, concentrating on its core asset value proposition over six blocks, one in production and five in exploration.


Operations Update

Upstream

• Gas production in H1 2013 was 1.34 Bcf (37.8 million cubic meters), a 59.3% year on year increase.
• Quarter on quarter growth of 8.3% achieved in Q2 2013 with production of 697MMcf (19.8 million cubic meters) compared with 644MMcf (18.3 million cubic meters) in Q1 2013.
• In H1 2013, 3 LiFaBriC wells accepted at the Company's production block in Shizhuang South (GSS).
• 4 LiFaBriC wells accepted at the Company's 5 exploration blocks.
• The total number of LiFaBriC wells across all blocks now stands at 67, a 67.5% increase on a year earlier.

Greka Engineering & Technology ("GET")

• GET has assumed the processing and transmission functions to and from its Integrated Production Facility (IPF), at the GSS production field and charging per cubic meter of gas delivered basis since 1 January 2013.
• GET added 2km of gas gathering pipe in the first half bringing the total to 33.3km of well gas gathering pipelines installed at GSS.
• GET added 14 external customers for its manufactured products and services in H1 2013, a 21% increase over the 2012 year end and now has 90 external customers.

Downstream

• During Q2 2013, Greka Gas Distribution Ltd, the Company's wholly owned subsidiary, continued selling gas from the GSS production block:
o piped natural gas (PNG) from the IPF is sold to the West East Pipeline via the Company's self-built, owned and operated pipeline and
o CNG is sold via the Company's self-owned and operated fleet of CNG fuel tankers.
• PNG sales commenced in October 2012. PNG sales were 218MMcf (6.18 million cubic meters) in Q2 2013, a 28.5% increase on the Q1 2013 (169 MMcf / 4.8 million cubic meters).
• CNG station sales were 129 MMcf (3.676 million cubic meters) in Q2 2013, a 6.8% increase on Q1 2013 (121 MMcf / 3.441 million cubic meters) / a 70.8% increase over Q2 2012 (76 MMcf / 2.152 million cubic meters).
• CNG station sales were 251 MMcf (7.117 million cubic meters) in H1 2013, a 67% increase over H1 2012 (150 MMcf / 4.26 million cubic meters).
• As at the end of Q2 2013 8 CNG stations had been constructed, with 6 in operation. The Company expects to construct another 3 stations by year end.

Randeep S. Grewal, Chairman and Founder of Green Dragon, commented:

"The streamlined E&P Green Dragon continued to make progress on many fronts. A focused action plan on resolving the title issues was successfully concluded in the Company's favour. Operationally, there was continued progress on the gas production and sales in GSS. Corporately, we are readying GET for its market debut. GET, our second dividend in specie since being listed on AIM, is expected to generate immediate additional value for shareholders that to date has been inherent within the business but hidden. The demerger strategy also incentivises each business unit to capitalize on its niche technology excellence and grow its respective customer base so as to expand off foundational customer GDG. The addition of 14 external customers at GET is a forerunner of what shareholders should expect in time. Finally, even though unacceptable, the conclusion of the COPC arbitration concludes any ambiguity to this contingent liability. While we intend to process an appeal, the maximum exposure is defined. With the distractions of the title and COPC arbitration concluded, the management can now focus on its core lucrative CBM production and sales business going forward. "

[ceohunter] 24/4/2013 10:26

Green Dragon Gas hails significant reserve upgrade

Stephen Hill, VP Corporate Communications, tells Proactiveinvestors about the 37% increase in the company's 1P (proven) reserves. He also expresses confidence in the company's ability to meet its challenging 2014 production targets, and discusses plans for raising new funds, and how the capital would be deployed.