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28 Oct 2008 11:37
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28Β OctoberΒ 2008
GREEN DRAGON GAS LTD.
("Green Dragon" or the "Company")
VERTICAL AND HORIZONTAL WELLSΒ SUCCESSFULLYΒ DRILLED INHOUSEΒ
Green Dragon GasΒ LtdΒ (AIM:Β GDG), the Chinese vertically integrated gas business, today announcesΒ that itsΒ wholly owned subsidiary Greka Technical Services ("GTS")Β has completedΒ itsΒ first vertical wellΒ andΒ isΒ drilling two additional vertical wells.
GTS was launched onΒ 26Β November 2007 and has sinceΒ ordered andΒ taken delivery of five new drilling rigs manufactured in the USA, hiredΒ 116Β employees, held extensive training conducted by the rig manufacturerΒ and spud its first three verticalΒ wells GSS036,Β GSS035 and GSS044Β onΒ 15Β September,Β 23Β SeptemberΒ andΒ 24Β OctoberΒ 2008,Β respectively.Β
GTS Rig#1 drilled well numberΒ GSS036Β to 843 meters and completedΒ itΒ within 38 calendar days. The well targeted coal seam #3 which was found between 786 and 793Β meters in depth,Β or 6.5 meters thick.Β
GTS Rig#3 is drilling well number GSS035Β and is currently at 610 meters,Β with a target depth ofΒ 790Β meteres. GTS Rig #2 is drilling well number GSS044Β and is currently at 55 metersΒ with a target depth ofΒ 568 meters.Β
Additionally,Β theΒ GTS 50-50Β joint ventureΒ with Mitchell Drilling has completed itsΒ thirdΒ horizontal well.Β A total of 2,060 metersΒ has beenΒ drilled in the #3 coal seam with two horizontalΒ wellsΒ intercepting intoΒ GSS031,Β a vertical well. The well was completed in 78 days.
On the Shizhuang South Block (GSS), the CompanyΒ isΒ now operatingΒ 50Β vertical wells andΒ 3Β horizontal wells within theΒ operationalΒ Zaoyuan Compressor Facility.Β 6,000Β KW of power is self-generatedΒ dailyΒ from the gasΒ producedΒ and sales have commenced with aΒ dailyΒ truckΒ supplyingΒ CNG retail stations in test marketing.
TheΒ Company'sΒ Chairman and CEO, Mr. Randeep S. Grewal,Β commented, "I had the pleasure of spuding GSS036Β andΒ personallyΒ drilling the first jointsΒ which validatedΒ our decision to acquire theΒ latest technologyΒ CBMΒ rigsΒ as I experienced the technological enhancement in the drilling operations.Β TheΒ rigs'Β versatility, flexibility, commonality and mobility are a few pertinent characteristics providing an ideal foundation toΒ enableΒ GTS'sΒ successfulΒ launchΒ ofΒ a 150 employee strong drilling service company withinΒ 10Β months.Β It has nowΒ completedΒ theΒ first wellΒ withΒ an additionalΒ twoΒ on their way."
Mr.Β Grewal addedΒ "While the decision to launch GTS was made byΒ the Board, the executionΒ has beenΒ led byΒ GTS'sΒ highly experienced and qualifiedΒ GeneralΒ ManagerΒ and Chief Operating OfficerΒ ZhangΒ Bao ZhuangΒ andΒ his handpicked management team which has demonstrated theΒ company's potentialΒ in a very short period of time."
"The completion of thisΒ Dymaxion well concludesΒ the third consecutive successful horizontal well drilled by our joint-venture with Mitchell Drilling inΒ theΒ GSS block confirming a wide applicationΒ throughoutΒ this block.Β We expect this drilling success will have a material positive impact to the GSS block development in 2009.Β We expect each Dymaxion well to reduce the need to drill five vertical wellsΒ as we continue to expand our developmentΒ and simultaneously reduce our surface acreage demands.Β The rig has been mobilisedΒ toΒ anotherΒ block to confirm that theΒ technologyΒ also appliesΒ in that particular coal seam and depth. We will release the pertinent information as it becomes available." concludedΒ Mr.Β Grewal. Β
The information contained in this announcement has been reviewed by Peter Wei, Greka's Chief Geologist, PHD in Oil & Gas Exploration from Northwest University, China.
For further informationΒ on the Company and its activities, pleaseΒ refer to the website atΒ www.greendragongas.comΒ orΒ contact:
|
Randeep S. Grewal / Betty CheungΒ Green Dragon Gas |
+852 3710 0168 |
|
Dr Azhic Basirov /Β David Jones Nomad & Broker, Smith & Williamson |
+44 20 7131 4000 |
|
Tim Redfern Broker, Evolution Securities |
+44 20 7071 4300 |
|
Tim Thompson / Christian Goodbody Investor Relations, Buchanan |
+44 20 7466 5000 |
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