News

October 07, 2008

Green Dragon Gas Makes Great Strides In Vertically Integrating Its Coal Bed Methane Business In China

Green Dragon Gas has had a very busy time in 2008 what with capital raising and acquisitions. Its interim report for the six months of the year is inevitably largely retrospective even although it does cover events after June 30. However, Randy Grewal, the Chairman and CEO, was through London recently and told oilbarrel.com where the spate of activity had placed the company in terms of forming an integrated gas company in China based on Coal Bed Methane (CBM).

During the period 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. Some US$37 million of convertible debt was converted into equity (largely in Hong Kong and Singapore) in July 2008 reducing total long debt by 39 per cent to US$58 million. The public float increased to 17,896,159 shares or 16.9 per cent of outstanding 105,896,445 shares after the conversion.

On July 3 Green Dragon completed its...