GDG CONRACTS 11 Day countdown !!!10 Oct 2014 08:54
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.