Green Dragon Gas Sees Jump in 2013 Gas Output on Third Party Activity

Green Dragon Gas, a China focused coal bed methane player, has announced a 304% y-o-y increase in gas production to 7.19 Bcf (including third party activities) in 2013.

Company’s own output in 2013 stood at 2.9 Bcf, up 11% from last year.

Standalone gas production in fourth quarter of 2013 was 722 MMcf, representing a 1.5% increase on third quarter of 2013 and a 42.6% y-o-y increase over fourth quarter of 2012 of 506 MMcf.

Production in 2013 came from 235 wells, but Green Dragon said there still remains a further 1,300 to be reviewed.

Reviewed production from wells drilled by some of the third parties on the company’s PSC acreage to date exceeds 4.40 Bcf for 2013, Green Dragon said.  The company expects to conclude the related net economic benefits from such reviewed acreage within the first quarter of 2014.

Of the total gas produced by the company, 37.3% is sold and the remainder is currently either being sold to Greka Engineering & Technology Ltd. to generate electricity or being temporarily flared (where wells are not tied in), the company said.

The gas production figures provided above represent total production from all wells drilled, including those wells tied in and contributing to sales volumes and those in the process of being tied in to distribution infrastructure.  

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