Green Dragon Gas Ltd. provides an operations update for the six months ending 31 December 2014. Green Dragon is implementing a programme to deliver an imminent step change in production and cash generation, maximising value from its strategic locations in China's strong growth gas market.

Operational Highlights

• H2 2014 gross production of 4.17 Bcf (H2 2013: 4.16 Bcf)

• 2014 gross gas production of 8.2Bcf (2013: 8.2 Bcf)

• 10 LiFaBriC wells completed in 2014

• Closer cooperation with partners CNOOC/CUCBM and CNPC/PetroChina

• CNG realized gas sales price of US$18.6/mcf

2015 Operational Outlook

• Gas prices stable and unaffected by oil price weakness

• Year end exit production objective of 12bcf

• Continued drilling of LiFaBriC wells at the commercial GSS block

• Drilling of exploration wells across all 8 blocks

• CNOOC/CUCBM to cooperate to build significant infrastructure within GSS Block

• GSS block pipeline and gas gathering capacity to increase to 53 bcf

• Coal seam 15 within GSS and GCZ to be explored

Tags: Green Dragon Gas Ltd.