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Yes and also Greka Drilling and engineering, thanks for the info. Interesting times ahead!

First I have heard of this run in with Conoco, can anybody enlighten? Tom Winnifrith on Shareprophets: It is now more than three weeks since I passed to Green Dragon Gas (GDG) a dossier showing environmental wreckage in the US and bloodied Chinese villagers. The dossier was prepared by a former trade partner. I made it clear that I would publish a rebuttal in full. Despite promises to the contrary I have received no such rebuttal. But that is not as pressing as the cash issue and a potential $50 million black hole which could sink Green within weeks. You can view the full, truly unpleasant dossier here The cash position is pretty clear. Cash at 20th June was $20.7 million. In the first half the operating loss was $8.3 million while exploration costs (that would be aggressive drilling) were $21 million. Green Dragon has since announced that it is curtailing its drilling which is not exactly surprising if you do the maths. An operational update earlier this week indicated that revenues had increased in Q3 and that this give additional options to funding discretionary capex. But sales volumes were only 2% up on Q2 so given the first half metrics it is clear that cash is VERY tight. I note that the “operations and finance” section of that update provided no guidance at all on the exact cash position as at 30th September but you can bet it was well down on June. But there is a far bigger issue looming. In July a Singapore Court adjudicated in a case of Conoco vs. Green Dragon. It found for Conoco to the tune of $42.6 million plus interest and fees. I am told that the big round number is $46 million. Green Dragon has appealed and the Court is due to meet early next month (November). Green says it is confident. However I have today seen an email from Conoco in which it states: ConocoPhillips is pleased with the ruling of the Tribunal. We received our full damage claim plus interest on the claim for breach of the Farm Out Agreement. ConocoPhillips can confirm that Green Dragon Gas is seeking to challenge the award in a Singapore court. ConocoPhillips feels confident about the validity of the award and expects a favorable ruling. Ends. We shall see. Green had this claim down as a contingent liability in its last accounts. That means that it was NOT provided for. And so within a few weeks we shall find out one way or another. If Green wins then it is still pretty tight for cash, has still not rebutted the dossier claims and is still, at 260p, capitalised at a mouth-watering £355 million. For a company that has never generated free operational cashflow in its five year history and which is clearly in need of more cash that is bonkers. But if Green loses then it will be forking out $46 million (plus its costs and Conoco’s costs on the appeal). And quite simply it does not have that cash. That would, I suggest be, very bad news indeed for the share price. Which way will it go? Bad or Disastrous? Onl

Any Commnets? On the 4th October I published an explosive dossier on Green Dragon Gas (GDG) which contained photos of environmental destruction and bloodied Chinese villagers. The company had been passed the dossier 5 days earlier for comment and its spokesman (Mr Philip Dennis of uber expensive PR firm Bell Pottinger) promised a response on 4th October. There has been no comment. You can read that article HERE Green Dragon - a perennial loss maker kept going only by rounds of financings - did issue a release on 8th October which it headlined “significant drilling development.” Hmmmm it was actually a bit confusing and only left me wondering exactly how the Chinese system of title actually works. Critic ally the company concluded that it was, on the pretext of analysing new data, suspending aggressive drilling. I say “Noodles to you” Green Dragon. The reason Green Dragon is curtailing aggressive drilling is that it has a bit of a cash issue. Cash at 20th June was $20.7 million. In the first half the operating loss was $8.3 million while exploration costs (that would be aggressive drilling) were $21 million. Do your maths – there is a very good reason capex has been curtailed: Green Dragon cannot afford to fund it. At some stage very soon Green Dragon will be trying to raise fresh funds to keep the show on the road. At 264p the market capitalisation is a totally unjustifiable £360 million: remember this company has racked up loss after loss for 5 years and is running out of cash. AND IT REFUSES TO COMMENT – AS IT PROMISED IT WOULD – ON THE DOSSIER BELOW. Come on Green Dragon, come on Bell Pottinger – why the silence? Should we assume that all the allegations in the shocking dossier are true since you have declined to comment on this once having had more than two weeks to do so? Over to you Why do I mention Greka Drilling (GDL)? Simply because: a) it shares the same CEO with Green Dragon b) right now almost all if not all of its business comes from Green Dragon. It strikes me that if as at October 1 Green Dragon has - and I quote –“suspended aggressive drilling” that is a fact that Greka should be flagging with investors. Instead in its trading statement issued today it blathers on about metrics in the three months to 30th September (which seems to show a Q on Q decline in metres drilled) and then says that expectations for the fourth quarter are unchanged. Go figure – surely that cannot be the case. It is not as if there could be any miscommunication between the two companies as they share a CEO, Nomad, broker and PR firm. How cosy. Now about that dossier…chaps either with your Green Dragon or your Greka hat on would you care to comment yet? In case you have lost the link: - See more at: http://www.shareprophets.advfn.com/views/2012/green-dragon-greka-drilling-why-no-relevant-statement#sthash.B3NH7onn