Green Dragon on Target for 12BCF of Gas in 2015
China-focused junior Green Dragon Gas reported Monday that it was on target to achieve its 2015 year-end production objective of 12 billion cubic feet of gas.
Reporting an operations update. Green Dragon said its production for 2014 was unchanged over the previous year at 8.2 billion cubic feet.
The firm completed 10 wells using the LiFaBriC (lined inseam faulted brittle coals) drilling technology during 2014. For 2015, it plans to drill further exploration wells across all eight of its blocks onshore China.
Green Dragon Chairman Randeep S. Grewal commented in a company statement:
"2014 was a milestone year for Green Dragon. Following the execution of very constructive and lucrative agreements with all our partners in the first half, the latter part of the year was productively focused on our operations. The combined management teams of Green Dragon and our partners are working closely together and sharing extensive technical information to the benefit of all parties.
"The 10 LiFaBriC well drilling campaign was completed on time at [commercial block] GSS and is already showing positive results. This re-confirms our belief in the LiFaBriC completion method and its applicability to the Qinshui basin coal seams, and we look forward to commencing the initial phase of our busy 2015 drilling program.
"At the same time, in accordance with our agreement, CNOOC/CUCBM continues to invest in the infrastructure needed to monetise the current and expected production from the additional circa one thousand wells which will be put online in due course.
"Furthermore, as expected, Chinese government policies towards gas utilization objectives and prices are unaffected by the drastic fall in crude prices. I am pleased to confirm that our realized gas prices remain stable, as forecasted, putting us in a very strong position for the year ahead. We remain confident that Green Dragon Gas will continue to deliver value to its shareholders through this turbulent global commodity price environment."
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