News

August 27, 2009

Green Dragon Gas Does A Ground Breaking Farm Out Deal With ConocoPhillips For Its Coal Bed Methane (CBM) Acreage In China

Green Dragon Gas is a London AIM listed company set on establishing a fully integrated CBM (Coal Bed Methane) supplier and marketer in China. We have got so used to writing about the mid stream and downstream aspects of its business recently --because that is where the action seems to have been -- that it is easy to forget the importance of the upstream activities of the group.

Now, however, in what the company describes as a truly exciting investment GDG has announced a farm out agreement to US major independent ConocoPhillips for its CBM acreage which highlights the sheer scale and potential of these assets. Under the terms of the farm out, ConocoPhillips will make an initial payment of US$ 20 million to Greka (GDG’s China subsidiary) and will also fund up to a total of US$ 30 million of the capital expenditures.

ConocoPhillips can elect to continue with...