News

December 11, 2008

Green Dragon Gas Makes Good Progress in 2008 In Building A Vertically Integrated Coal Bed Methane Business In China

While many junior and mid tier oil and gas companies are nervously looking at cutting costs and in some cases considering asset sales to survive in the wake of the oil price decline, a group that is looking perky is Aim Listing Green Dragon Gas, at least according to broker Evolution Securities. In a recent note Evolution said: “Two thousand and eight has been a transformational year for Green Dragon. The combination of organic growth (Greka Technical Services) and acquisitions has produced a degree of vertical integration which is rare in any gas business, let alone a CBM business in China.

Two thousand and eight has certainly been a busy time for the London AIM listed company. In its mid stream activities on July 3 Green Dragon completed its US$10.68 million acquisition of Giant Power International in an all cash deal (Earlier Green Dragon raised US$36.8 million (net of expenses) in an equity placing with institutional investors at a price of US$7.98 per share in May 2008. After this some US$37 million of convertible debt was converted into equity (largely in Hongkong and...