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Until listing.
?
It seems that there are others who do not hold your view and ultea positivity? Right or wrong to believe you ? ;-)
With only two weeks to go before the move to the main board £££
:-) Want to talk but cant. If i riddle it people get all tetchy.
Investor Chronicle ranked Green Dragon Gas as one of the 20 Best Performer’s Stock in the last 12 months
Coupled with the late and after hours 20+ trades, could be more late action today ?
GDG is scheduled to cease trading on AIM and begin trading on the Main Market of the London Stock Exchange on, or around, 27 October 2014. No new Ordinary Shares will be issued. This is a natural upward migration, following a period of corporate and operational development. It will invariably lead to the attraction of a wider pool of investors. On listing on the Main Market. GDG will potentially benefit from greater liquidity and lower share price volatility.
Imminent step-change in cash flow. Currently, GDG holds a 60% interest in producing block GSS (expected to increase to 70% in 2015) with a cost recovery preferential cash flow of 90%. As such, the company will recognise 96% (90% cost recovery plus 60% of the remaining 10%) of revenues arising from production until all historical capex is repaid in full. Given the significant capex spend projected (150 new wells on GSS at an estimated cost of c.US$225m) the 96% preferential cash flows will have a significant impact on GDG’s 2015 financials and beyond. The 2014 Interim results showed encouraging revenue from block GCZ. Net sales of CBM amounted to 2.8Bcf, of which 2.06Bcf was attributable to GCZ and revenue of US$8.4m was recognised. LiFaBriC wells become a manufacturing process. LiFaBriC methodology, an adaptation of traditional horizontal drilling methods, is mature, offers stable production with little decline, and the interference created by LiFaBriC wells is potentially able to aid de-watering and boost production from proximal vertical wells. All suitable wells are being systematically connected to infrastructure as they de-water. Close partnerships and secure title achieved, ambiguity eliminated. Firm agreements are now in place regarding title. GDG has settled its litigation matter with ConocoPhillips to the mutual satisfaction of both parties. The interests of partners PetroChina, CNPC, CNOOC and CUCBM are now aligned with GDG. The company is now looking to reserve-based lending (“RBL”) to progress a 150 LiFaBriC well drilling programme. GDG’s focus is the migration of its reserves towards 1P. In May 2014 Netherland, Sewell & Associates (“NSAI”) increased net 1P reserves by 113% to 126Bcf (59Bcf in 2012) and net 2P by 22% to 382Bcf (314Bcf in 2012). Move from AIM to LSE Main Market in October 2014. We believe this will enhance liquidity and the company’s profile, whilst potentially reducing share price volatility.
Between 2010 and 2013 illegal wells were drilled on all of GDG's licenced blocks. Gdg and the CHINESE GOVERNMENT have now stopped all illegal activity and through discussion GDG has been awarded a variety of refunds and awards of capex towards the drilling on GDG land. At present there are 1,800 illegal wells that have been freely drilled FOR GDG at no expense. From this point on the gradual process of THE GREAT CONNECT has begun. 1,800 free wells are being connected up and with each one GDG takes a % cut as royalty. This varies depending on the block and the SOE who drilled the free wells. Once these are connected up, approx date of year end 2015 + the drilling of 150 LiFaBric wells by GDL for GDG on a contracted and legal basis, GDG year on year gas production totals are GOING THROUGH THE ROOF ! As this situation is a one off regards being given in effect 1,800 freely drilled wells that just need to be connected GDG finds itself in a very very unusal and pivitol moment. Once the great connect is completed and the 150 LiFaBric wells drilled GDG will be SELF FUNDING. A major milestone for a company. This is 1 readon why GDG are to lidt on the MainMarket in London on October 27th 2014. This really is the chance to join in with GDG's good fortune before the GREAT CONNECT has truely started.
GDG & GDL have designed a technology to extract CBM in a much more cost effective and productive way using its own fleet of specially designed rigs. LiFaBric well No1 was drilled in 2008 and to the surprise of the shale gas industry across the world has seen VERY LITTLE drop in original flow rate, unlike the 1000's of wells drilled inthe North American Shake Gas Revolution. Since that very first LiFaBric well was drilled virtually all other wells drilled using this new technology have outperformed the US equivilents by a wide margin. Now GDG have started drilling a much larger contract, being drilled by GDL its sister drilling company, the 150 wells of LiFaBric should produce massive increase in production levels for GDG and also start to fill the shortfall in Chinese " shale gas ". GDG have targetted 150 wells by November 2015 to achieve the expected gas output of 18 BCF which will see GDG become as SELF FUNDING enterprise by year end 2015 ! This is truely on opportunity to get in to the Chinese Gas Revolution. Please dyor and check out LiFaBric drilling stats on the GDG website. The technology is fantastic !
Green Dragon Gas (AIM: GDG LN) is a coal bed methane (“CBM”) exploration and production company with eight blocks on six production sharing contracts (“PSCs”) in China. With issues regarding title removed, GDG has direct equity interest in c.1870 wells (including 78 LiFaBriC). In addition to being the largest CBM independent in China, it has trucks, pipelines, and wholesale and retail distribution stations for compressed natural gas (“CNG”). We anticipate a step-change in cash flow and for LiFaBriC drilling to become a manufacturing process. We initiate coverage with a BUY recommendation and TP of 952p.
GDG as I understand have sort a listing on the Main London Market which happens in 11 trading days from now. This should see the releasing of atleast $240m unto their accounts for the drilling of 150 LiFaBric wells on their 100% owned block in China. This will be drilled by sister company GDL, who will recieve payment for this 1 year contract of the $240m. Using cutting edge LiFaBric technology this makes GDG / GDL virtually the only efficient method of extracting tight brittle coal CBM in China. Clients to GDG - CNOOC, PETROCHINA,CNPC,CUBCM,SINOPEC,GBCB are all happy with the work being carried out by GDG / GDL and although most of the work is fine tuning the drilling to connection the potential of having first mover advantage on 5 of the biggest blocks in China is huge. The Chinese Government who subsidise the above companies known as SOE's NEED gas now ! With tensions in the Middle East now building the importing of 40% of thier gas through the area my prove to be a problem. Thebgovernment have acknowledged the need to be much more self sufficient and have instructed CNOOC to sell off the more expensive and risky off shore drilling blocks to concentrate on drilling the huge tight CBM fields on its own land, so cutting drilling costs, having an easier connection to provide the gas and a much more reliable source of cheap gas. GDL have technology which drills 1 well for CBM against the SOE's who took an average of 5 wells to achive the same output but at much larger expense. NOW is the time the Chinese government have decided to go for this gas and NOW is the time that LiFaBric will quickly start to earn its money. Cantar reports a near £10 valuation, in a short time that may well look quite cheap as thebtechnology developes over time. More contracts ARE on the way for GDG & GDL resectively. Strong buy at £4.60 & 10p for GDL.
This is going to fly in the coming weeks !
:-) 2050 reasons to invest in the connect which will take place through 2015 when just gets better and better as the pre drilled wells come onstream, beats realying on one mega well find offshore ? All that new CBM coming to market .
Thanks to the numpy on the sunday telegraph who didnt even bother to put about the main listing, never mind the cost savings the.company actually made over 2013 H1 2014, those with cash should imho be snapping these up. 2015 will see the big connect, just sit and watch those figures grow and grow organically. :-)
None of this makes any sense. With so much news coming, why are GDG & GDL being hammered? Why did a tipster post a sell rec in the sunday telegraph ? He got his entry point most likely. Is it for insto to buy in ?
Great buying opportunity to be had at the moment prior to main board listing.
TM I get whats going to happen. It is the shift we have all been waiting for. Good luck.
With its coal bed methane business in China now in the “manufacturing phase”, Green Dragon Gas has announced its intention to cancel its AIM listing and move up to a standard listing on the main market in London. The company joined AIM in August 2006 but with a market cap of more than US$1 billion and a growing reserves and production base it has outgrown the growth-led exchange. It hasn't been an easy journey for the Hong Kong-based gas producer, which was founded in the 1990s when chairman and founder Randeep S Grewal first spotted the opportunity to apply learnings from the North American CBM gold rush to China's massive coal resources.Chinese coal seams, however, proved very different and Green Dragon was forced to develop its own proprietary technology to unlock the gas from the faulted brittle coals. The resulting solution – known as LiFaBriC – means the company can now deliver repeatable well results and ramp production from its acreage. Green Dragon believes a move to the Official List will raise its profile, assist in the liquidity of its shares and provide a great range of potential investors. It expects to cancel its AIM listing and start trading on the Main Market on or around October 27, pending all necessary approvals. “This move is a natural upward migration that complements the material growth the Company has seen and the Board feels that the Main Market provides the right platform to realize the Company's potential,” said Grewal, hailing “another milestone event for Green Dragon Gas this year”. The company's interims for the first six months of 2014 show how the company is building momentum. Revenues were up 123 per cent at US$15.5 million, production was up 206 per cent at 4.1 BCF for the six month period, and losses narrowed to US$7.26 million. Importantly the proportion of game-changing LiFaBriC wells is increasing: of the 1,869 wells drilled to date across the Green Dragon blocks, many by state-owned third parties that are now its partner, 78 use the proprietary LiFaBriC technology. With the company secured in its title to its blocks, and with powerful state companies as its partner, Green Dragon is in a strong position to chase down the resource base across its blocks. As Grewal said earlier this month at the release of the interims, the “approximate US$1 billion of deployed capital across all the seven blocks is destined to yield shareholder returns in the years to come”.The shares closed up one per cent at 452.38 pence, and are up 67 per cent year-to-date.
Can't loose from what I hear ! Wish i had £100k right now. ;-)
Took back a small amount I sold at 620 at 454. I am convinced we are near if not at the bottom. One way from here hopefully!
Sorry, while you are around, I don't get the delays in soe's contracts penned in year 2012 & 2013. Do you have any view you can add as to the order book ( backlog as rg calls it ? )? Be a real help if you could suggest poss reasons to me, feeling like a numpty as it doesnt make business sense to me. I am involved with the major retails ,uk, on promo and driving sales. What rg has done OR been made to accept looks like brand suicide to me. Never inform if it is not followed up , investors go elsewhere and mud sticks. Anyway if you have any postable views would love to hear from a sensible poster like your good self. Good Q4 , hmm.... fingers and toes crossed.
updates as in operational or conections inc rev ?
I think that's what is going to happen. The PR machine is getting ready to churn out some great updates leading up to the main board listing. Looking forward to an interesting last quarter.