Green Dragon Gas Ltd, the AIM listed Chinese coal bed methane business, today announces its unaudited interim results for the six months ended 30 June 2008.
Highlights:
- Net assets of US$496 million, including cash of US$73 million, and a loss after tax of US$12.9 million (US$0.134 per share).
- Raised US$36.8 million (net of expenses) in an equity placement to institutional investors at a price of US$7.98 per share in May 2008.
- US$37 million of convertible debt was converted into equity in July 2008 reducing total long term debt by 39% to US$58 million. Public float increased to 17,896,159 shares or 16.9 % of total outstanding 105,896,445 shares after the conversion.
- Acquired Pacific Asia Canada Energy, Inc (PACE) for CAD$32.4 million (closed in July 2008). Deal resulted in Green Dragon acquiring a sixth CBM block of 946 sq km with an estimated 5.2 TCF in gas-in-place. Additionally, PACE has a JV with Mitchell Drilling (Australian directional drilling specialist) with a ten year technology exclusivity period.
- Acquired Giant Power International Investment Limited (GPI) for US$10.7 million. Deal closed in July 2008 providing two strategically located gas distribution centres off the West-East CNPC pipeline in Zhengzhou, Henan and Wuhu, Anhui Province
- Acquired Zhengzhou Nanhai Gas Ltd (ZNG), Zhengzhou Clean Petro-Equipment Ltd (ZCP), and Zhengzhou Clean Technology Ltd (ZCT) for US$9.25 million in August 2008. The acquisition of these three profitable businesses, synergistically located in Zhengzhou in close proximity to the Company¡¦s CBM producing Shizhuang South block, is a realisation of the Company¡¦s vertically integrated strategy .
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