(Alliance News) - G3 Exploration Ltd on Monday said producing assets in the onshore GSS gas field in China have been suspended, leaving some villages without gas and electricity.
Shares in G3 were down 34% at 10.40 pence in London in early afternoon trading.
GSS or the Shizhuang South Block is located in the Shanxi province and is G3's most advanced block. China-focused gas producer G3 said the suspension took place "at the direction of the recievers", who were acting as directors of Greka Energy (International) BV.
As a consequence of the suspension, gas flow has dropped by around 150,000 cubic metres per day, resulting in the town government getting involved. The town government has required that both production and supply are "restored as soon as possible".
G3's joint provisional liquidators were appointed in January with the goal of preserving assets and assessing refinancing or restructuring opportunities.
Chair Randeep Grewal said: "I am disappointed to report such actions and saddened to see the local town and village citizens being deprived of basic gas and electricity supply We are attempting to restore gas production as soon as possible.
"The [joint provisional liquidators] and the company continue to be committed to support the re-financing or asset sales completed so as to pay off the debt outstanding to GIC and Nordic Bond Holders."
By Anna Farley; annafarley@alliancenews.com
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G3 Exploration (G3E)