Green Dragon Gas gives upbeat outlook after record revenues in 2013

9th Jun 2014 07:45

Green Dragon Gas (GDG), one of the largest producers of coalbed methane (CBM) gas in China, reported record revenues in 2013 and gave a confident outlook with title concerns now behind it.Revenues surged to $62.2m in the 12 months ended December 31st, up from just $8.1m in 2012. This was helped by a 424% year-on-year increased in gas sales to 8.01bn cubic feet (Bcf) in 2013.However, a big increased in administrative expenses and negative change in fair value of financial derivatives led to pre-tax losses widening to $34.8m, from $16.8m the previous year.All concerns over title to the company's assets were resolved in July 2013 with the reissue of the related licences and the subsequent withdrawal by CUCBM/CNOOC of the erroneous termination notices that had appeared on its website in March 2011, GDG explained.The subsequent discovery of operational activity by CNPC/PetroChina and CUCBM/CNOOC on GDG's licence areas over the preceding years led to the signing of agreements with all groups. These have "secured substantial economic value for the company, both retrospectively and in the future, and secured strong partnerships with these companies", GDG said.During this time, the company took a "prudent approach" to investment and capital expenditure and decided to suspend its 150-well drilling programme on its GSS block, which it is now in the process of re-activating. It also reduced the level of operational activity on all its production sharing contracts."With the title concerns now behind us we are once again focused and committed to drive our operational plans going forward enhancing our shareholder value into a new paradigm with funding expected to be via debt facilities," said Founder and Chairman, Randeep Grewal.BC