logo-loader
EnergyOil & Gas
G3 Exploration Ltd

G3 Exploration expects Green Dragon de-merger to take place in June

Shareholders in G3 will get a stake in Green Dragon or cash if its assets can be sold beforehand

flag
Green Dragon has two producing blocks in China

G3 Exploration Ltd (LON:G3E) expects the spin-out of its producing gas assets in China to complete at the end of June.

The producing assets have been consolidated into Green Dragon Gas, which will either be sold or listed in Hong Kong on 28 June.

Shareholders in G3 will get a stake in Green Dragon or cash if its assets can be sold before then.

READ: G3 Exploration Ltd committed to production assets spin-out

Green Dragon owns stakes in Block GCZ (Chenghuang) in China, with proven probable reserves (2P) of US$157mln and Block GSS (Shizhuang South), where the proven reserves (1P) alone are worth an estimated US$580mln.

Money from any sale will be used in the first instance to pay off US$270mln of debt owing to G3E, which will enable it to clear US$150mln of Nordic bonds and convertible loans.

The remaining US$120mln will fund G3's development of the Guizhou Block (GGZ), which is scheduled to start production this year.

Randeep Grewal, G3’s executive chairman, said: "The approval of the Dividend in Specie, our third since 2006, is a landmark moment for G3 Exploration which will allow us to complete the planned separation of the producing assets from our exploration and development assets.

“Crucially, it provides a mechanism for us to return the value created within the producing blocks - where over US$1.3 billion has been invested by us with our partners - to our shareholders.”

Quick facts: G3 Exploration Ltd

Price: £0.36

Market: LSE
Market Cap: £55.41 m
Follow

Add related topics to MyProactive

Create your account: sign up and get ahead on news and events

NO INVESTMENT ADVICE

The Company is a publisher. You understand and agree that no content published on the Site constitutes a recommendation that any particular security, portfolio of securities, transaction, or investment strategy is...

In exchange for publishing services rendered by the Company on behalf of G3 Exploration Ltd named herein, including the promotion by the Company of G3 Exploration Ltd in any Content on the Site, the Company receives...

FOR OUR FULL DISCLAIMER CLICK HERE

Watch

Capital Network's Lionel Therond on Green Dragon Gas Ltd

Lionel Therond, analyst at Capital Network discusses Green Dragon Gas' plans to list its production subsidiary on the Hong Kong Stock Exchange as a dividend in specie.

on 12/15/2017

2 min read