RE: Buyers coming back at 10p18 Dec 2019 11:44
They have been planning this actually since before march - all in the rns results. Here is an extract.
Our focus as a Group continues to be on resurrecting the balance sheet through the sale of the producing assets through a dividend in specie of our wholly owned subsidiary Green Dragon Gas ("GDG"). The trade sale processes led by Citibank and Credit Suisse during the period concluded with a viable alternative on selling one of the fields but with an unknown timing to close due to conditions beyond the potential buyers control.
GDG has engaged an experienced bank and advisors to conclude a Reserve Based Loan ("RBL") of up to $250m, which has become a viable option to it following the approval of the Overall Development Plan ("ODP"). The proceeds from the RBL are expected to be sufficient to pay the intergroup loan to G3E enabling the dividend in specie to be concluded. Once independent, GDG maintains its plan to proceed onto a public listing.
Upon receipt of loan repayment proceeds from GDG, the Company expects to have successfully restructured its balance sheet, should be debt free and can proceed onto its exploration focused business plan. G3 Exploration shall in turn use these receipts to settle its outstanding debt, including to its Nordic Bond holders and Convertible Bond holders.
G3E has invested approximately $270m in its exploration portfolio which has a 2P value of over $816m. We are eager to focus on this portfolio and systematically migrate this portfolio into commercial production and thereafter farm-outs or sales. Each of these transactions should provide the shareholders a dividend. Our current portfolio in China provides a solid five year backlog of projects. The most advanced of these, the Guizhou exploration block (GGZ), is expected to commence test gas sales before the end of this year.
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