Green Dragon Gas Boosts Reserves

China focused coal bed methane player Green Dragon Gas has announced a significant increase in estimated reserves following the drilling of the additional 1500 wells drilled on its Production Sharing Contract areas by third parties.

The increase in estimated reserves by the company (primarily at Shizhuang South and Shizhuang North) is based on information recently disclosed by the Chinese parties, the company said.

Green Dragon Gas is in talks with the Chinese parties, in order to gain further information.

Reserves Highlights

• Total original gas in place of 25.2 Tcf
• Net 1P reserves increase to approximately 300 Bcf (59 Bcf at 31 December 2012)
• Net 2P reserves increase to approximately 600 Bcf (313 Bcf at 31 December 2012)
• Net 3P reserves increase to approximately 2,600 Bcf (2,508 Bcf at 31 December 2012)

Randeep S. Grewal, Chairman and Founder of Green Dragon, said "We expect this preliminary information will be further enhanced over the next few months and thereafter audited by Netherland Sewell and Associates at year end, in accordance with our standard practice.”

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