Last checked at 11 Sep 2020 07:00
11 September, 2020
G3 EXPLORATION LTD.
("G3 Exploration", "G3E" or the "Company")
Corporate Update
The Company has been informed that a winding up petition (the "Petition") has been presented by GIC Limited to the Grand Court of the Cayman Islands seeking the winding up of Green Dragon Gas Limited ("GDG"). GDG is a wholly owned subsidiary of Greka Gas China Limited ("GGC"), which in turn is a wholly owned subsidiary of the Company.
The Petition seeks the winding up of GDG on the ground that it is unable to pay its debts on a cash flow basis, and nominates the Company's Joint Provisional Liquidators to act as the Joint Official Liquidators of GDG. The Petition is listed to be heard on 13 and 14 October 2020.
GDG, in which the Company invested $342m, is an intermediate holding company of all the Group's producing assets which specifically include the GSS (Shizhuang South) and GCZ (Chengzhuang) blocks in Shanxi province in partnership with CNOOC and CNPC respectively.
The Chairman and CEO of the Company, Randeep S. Grewal, commented: "The Board of the Company is in support of the relief sought in the Petition and expects such action to provide the Company's stakeholders with fair market returns upon the sale of GDG assets."
About G3 Exploration Ltd.
G3E is a leading independent gas developer with operations in China and is listed on the main market of the London Stock Exchange (LSE: G3E). The Company reserves across eight production blocks covering over 7,566km² of license area in the Shanxi, Jiangxi, Anhui and Guizhou provinces. It holds six Production Sharing Agreements with strong, highly capitalised Chinese partners including CNOOC, CNPC and PetroChina, and has infrastructure in place to support multiple routes to monetise gas production.
The Company is committed to an exploration and appraisal focused business plan in coal bed methane development across three geographies concurrently. It has a well-established track record and demonstrated expertise in gas monetisation through three basic principles:
· Focus on core intellectual aptitude in developing coal bed methane
· Develop assets in an environmentally and socially prudent manner
· Protect accreted shareholder value