Last checked at 22 Mar 2010 07:00
22 March 2010- FINAL
GREEN DRAGON GAS LTD
("Green Dragon" or "the Company")
Annual results for the year ended 31 December 2009
Green Dragon Gas Ltd (AIM: GDG), one of the largest independent companies involved in the production of CBM gas and the distribution and sale of wholesale gas in China, is pleased to announce its annual financial results for the year ended 31 December 2009.
HIGHLIGHTS
Financials:
·; Revenues increased 90.3% to US$46.9m in 2009
·; US$20m received as initial payment from ConocoPhillips farm out agreement - additional US$30m drawdown facility for work programme activity to be completed by 2010 year end
·; Raised US$75m through share placement
·; Entered 2010 with net cash of US$34.7m
·; ConocoPhillips option to farm in to 3 blocks for an additional US$120m and ongoing share of capital investments
·; Launched two year discretionary growth US$250m capital investment programme for 2010 and 2011.
Upstream - Coal Bed Methane:
·; CBM gas production:
o Increased 127% to 1,092 mcf per day on average in 2009 over 2008
o Production target of 1bcf by end 2010 and 18 bcf exiting 2011
·; Substantial increases in reserves:
o Total gas in place of 25.5 Tcf
o 1P- NPV10 increased by 39% to US$168.2 million (32.9 bcf)
o 2P- NPV10 increased by 17% to US$1.25 billion (261.3 bcf)
o 3P- NPV10 increased by 29% to US$9.35 billion (2,333 bcf)
·; Drilling and Operations:
o Deployment of SIS horizontal drilling technology in GSS block increased in seam drilling to 43% of metres drilled in 2009 as compared to 17% in 2008
o Total metres drilled 10,145 of which 4,347 metres were in coal seam at GSS block
o 10 additional wells drilled bring total to 203 by year end
o Producing wells increased to 88 in 2009
o GSS wells drilled and dewatering increased to 49 in 2009
·; Distribution Infrastructure:
o Well tie in to pipeline and infrastructure in GSS block making good progress
o Upgrading of gas gathering station on block GSS to handle larger volume of gas sales on target and to be completed in second quarter 2010
o Established vehicle fleet for CNG distribution to retail stations
·; Sales
o Gas sales increased to 66,677 mcf in 2009 (5,959 mcf 2008)
o Gas being sold at US$13.82 per mcf through two wholly owned vehicle retail stations with 2009 well head prices steady at US$6.83 per mcf.
o Planned access to an additional 20 retail stations in 2010
Midstream Wholesale Gas:
·; Sales:
o Increased from 2.1 bcf in 2008 to 2.4 bcf in 2009
o Target planned sales of 6 bcf in 2010
Downstream Retail Gas:
·; Sales:
o Total sales increased from 9.4 bcf in 2008 to 9.9 bcf in 2009
o Targeting sales of 10 bcf in 2010
·; Distribution Infrastructure:
o Target to add an additional 100km of distribution pipeline in 2010 bringing total to 321km
o Five additional CNG distribution locations added to outer ring road of Beijing - Footprint of pipeline network expanded beyond Beijing development area to include Beijing outer ring road and Shandong Province
Commenting, Randeep S. Grewal, Chairman and CEO of Green Dragon Gas said:
"Green Dragon is at the point at which it is able to see significant growth in its upstream CBM gas business over the coming years. The Company has invested time and resources in getting the optimum technology to maximize the commercial returns in exploiting the very significant assets and is now able to start significantly expanding production and sales."
"We also expect to see significant growth from our downstream distribution business in and around the Beijing development area. This growth will be driven by increased utilization of the existing pipeline, growth in the footprint of the business and ongoing strong growth in demand."
"The Company's development is underpinned by its strong financial position and a highly experienced team on the ground in China. Growth in the business is also underpinned by the very significant discretionary capital investment programme planned over the next two years, which is planned to be funded by a combination of partners, gas sales, cash in hand and debt."
"This was our second year of reported revenue with a 90% increase year over year. The midstream and downstream operating businesses are profitable and paying dividends to Green Dragon."
For further information on the Company and its activities, please refer to the website at www.greendragongas.com or contact:
| Stephen Hill / Betty Cheung Green Dragon Gas
| +852 3710 0168 |
| Dr Azhic Basirov / David Jones Nomad & Broker, Smith &Williamson
| +44 20 7131 4000 |
| Robert Collins, Tim Redfern Broker, Evolution Securities
| +44 20 7071 4312 |
| Nick Morgan Broker, GMP Securities
| +44 20 7647 2800 |
| James Henderson, Phillip Dennis Investor Relations, Pelham Bell Pottinger | +44 20 7337 1550 |
The resource estimates in this announcement have been prepared in accordance with definitions and guidelines set forth in the 2007 Petroleum Resources Management System (PRMS) approved by the Society of Petroleum Engineers. The information in this announcement pertaining to Green Dragon's China resources has been reviewed by Mr. Craig H. Adams, a Vice President of Netherland, Sewell & Associates, Inc. He is a registered Professional Engineer in the State of Texas and is a member of the Society of Petroleum Engineers.
Definitions
| 1P | Proved reserves |
| 2P | Proved plus probable reserves |
| 3P | Proved plus probable plus possible reserves |
| bcf | billions of cubic feet |
| CBM | Coal bed methane |
| CNG | compressed natural gas |
| mcf | thousands of cubic feet |
| NPV 10 | net present value calculated using a 10% discount rate |
| PSC | production sharing contract |
| Reserves | reserves are those quantities of hydrocarbons anticipated to be commercially recoverable by application of development projects to known accumulations from a given date forward under defined conditions |
| SIS | surface-to-inseam |
| Tcf | trillions of cubic feet |
CHAIRMAN'S STATEMENT
Introduction
Green Dragon Gas has had another successful year and has progressed to the point at which it will be able to see significant growth in its CBM upstream gas business over the coming years. We now have an extremely good understanding of how to best exploit our very significant gas resource, as was underlined by the recently announced reserve and resource report, and we are making good progress in the development of the infrastructure needed to transport the gas produced to the end user.
Green Dragon remains in a unique position within the Chinese energy market and one that in today's world would be extremely difficult to replicate. The Company's current position of six very substantial CBM blocks located in and around areas of significant gas demand and close proximity to national pipelines is as a result of being a first mover and consistently active in the Chinese unconventional gas space.
The very substantial and growing demand for gas as an energy source in China is fueled by Chinese economic growth and government commitments to economic growth with a clean energy source. A target to reduce carbon emissions per dollar of national income by 40-45% by 2020 has compounded government attention and commitment to support the exponential growth in gas as the energy source of choice.
Upstream - CBM Production
Green Dragon's current focus is on the GSS block, where the Company expects to see first real commercial production and sales in the coming year. Within the block, production increased 127% on average in 2009 as compared to 2008. Exit year end production from the field was 1,432 mcf per day, which exceeded our forecasts. This increase was as a result of a greater number of drilled wells producing gas as well as greater productivity from individual wells.
Field personnel on the GSS block have shut in many of the well casings and are still flaring some of the gas as the infrastructure catches up to this earlier than anticipated production. The infrastructure is on target to be in place by the end of the second quarter of 2010 commencing consistent gas sales. Activities include completing the upgrade to the gas gathering station on the block to enable it to manage a greater volume of gas, the laying of the pipelines connecting the producing wells to the gas gathering station and upgrading the compression and power generating capacity.
In the years ahead we have set targets for increases in CBM gas production to 1 bcf in 2010 and grow eighteen fold to 18 bcf exiting 2011. These relatively aggressive targets are underpinned by potential production that is currently either being flared and or is shut in. These targets are also under pinned by the planned drilling programme this year and the deployment of the SIS drilling technology, which has been proved to substantially increase both our in seam drilling efficiency and the productive potential of the wells drilled.
In the last year, through the use of the SIS drilling technology within the GSS block, a distance of 4,347 metres was successfully drilled in-seam within 6 wells. As such, productive drilling within the block (in-coal seam) improved materially from 17% of total metres drilled in 2008 to 43% in 2009. The SIS wells drilled successfully also demonstrated better than anticipated production rates with faster de-watering times. Additionally, our Chinese crews drilled the required vertical wells and lateral top holes along-side Australian crews drilling the in-seam sections of the SIS wells throughout the year. This co-existing and cooperative drilling operation has provided a baseline to develop more crews to volumetrically increase our SIS well drilling capacity. The SIS technology will be the standard drilling methodology in the GSS block. The GQY block will be evaluated during this year for SIS applicability.
Of the 203 wells drilled to date, 88 are currently on-stream and producing gas, which represents a significant increase on the previous year. Within the GSS block alone the number of wells drilled and dewatering increased to 49. The balance of the wells are in varying stages of being put on production.
Sales of CBM gas are currently relatively small and being sold through vehicle retail stations in proximity to the GSS block. In 2009, sales increased in total to 66,677 mcf versus 5,959 mcf in 2008. Sales of CBM gas in China are not subject to pricing restrictions. Gas through the Company's two wholly owned retail stations, is sold at US$13.82 per mcf. The well head price for our CBM is currently US$6.83 and as such the Company gains substantial advantage from being fully integrated, including upstream, midstream and downstream operations. In the year ahead, Green Dragon has plans to gain access to an additional 20 retail stations. These stations are located in the Henan, China's most populous province with over 100 million people.
As made clear in the recently announced reserve and resource report by Netherland Sewell & Associates, Inc, the Company's CBM operations are underpinned by the very significant potential of the Company's assets in China, with total gas in place of 25.5 Tcf. This report also reflected the better economics raising the 3P NPV10 valuation to US$9.35 billion, a 29% increase over last year.
Midstream - Wholesale Gas Distribution
The Company's midstream operation consists of two commercial CNG distribution stations located near to the national gas pipeline network at Zhengzhou and Anhui. This business is based on achieving a margin on gas acquired and resold as CNG for distribution by road into areas of the country not serviced by the national pipeline network.
In the last year, sales through these two industrial CNG stations increased from 2.1bcf to 2.4bcf. As with last year the profit achieved from these operations is expected to be transferred to Green Dragon through a dividend payment of its shares.
Downstream - Retail Gas Sales
During the year, total sales from the Company's Beijing based pipeline distribution business increased from 9.4 bcf to 9.9 bcf. This increase was as a result of expanding the pipeline network and the ever increasing demand for gas in and around the Beijing Development Area.
The increase in the footprint of the network was achieved through the addition of five new CNG distribution locations and the expansion of the network beyond the Beijing Development Area circumferencing the Beijing outer ring road. Shandong province, with its first CNG project in Qihe, was also added.
In 2010, the Company remains on track to increase the footprint of the network again by adding an additional 100km of pipeline, bringing the total pipeline network to 321km. This increase is expected to be funded from internal cashflows. Sales are expected to be in the region of 10 bcf.
This profitable business continues a targeted sales approach to industrial users for the higher net margin, whilst also supplying the current 25,992 residential consumers. This pipeline network is currently highly under-utilized and benefits from industry migrating into its catchment area. The potential for organic growth of this business remains substantial.
Manufacturing- CNG Equipment
The smallest of our operating divisions but of equal strategic value is CNG equipment manufacturing. The division's continued diligence to the production of a high quality product with the highest safety standards was rewarded and acknowledged by PetroChina ordering our CNG Dispensers for its expansion into CNG retail in China. Deliverability of gas into a vehicle in under five minutes with varying tank pressures of 0.5 to 20 Mpa requires unique technology. We manufacture such high quality equipment under two patents owned by the Company. We expect continued growth in this business concurrent with the exponentially growing demand for this high quality product as CNG retail stations become more common throughout the Country.
Financials
Revenues increased 90.3% in 2009 to US$46.9m. This increase was primarily as a result of an improved performance from the Company's wholesale midstream and downstream operations.
Green Dragon remains well positioned financially, with cash on hand and strong partnership funding for operations, no secured debt and growing gas sales.
Outlook
While the year of the Ox (2009) was very good for the Company, the year of the Tiger (2010) promises to be one where we should see significant organic growth in gas production and sales complemented by niche acquisitive growth opportunities. We look forward to the year ahead with confidence.
I would like to thank my fellow shareholders for their continued support, as well as our dedicated employees, who work extremely hard in order to make the ongoing success of this business a reality.
Randeep S. Grewal
Founder & Chairman
22nd March 2010
Consolidated Statement of Comprehensive Income
Restated
Year ended Year ended
31 December 31 December
Notes 2009 2008
US$'000 US$'000
Revenue 2 46,906 24,649
Cost of sales (37,059) (21,073)
________ ________
Gross profit 9,847 3,576
Selling and distribution costs (1,461) (763)
Transaction costs 3 (1,782) (1,691)
Other Administrative expenses (16,700) (12,088)
Total Administrative expenses (18,482) (13,779)
________ ________
Loss from operations 3 (10,096) (10,966)
Finance income 4 1,556 929
Accelerated finance charges 5 (12,189) (732)
Other finance costs 5 (8,103) (12,457)
Total finance costs 5 (20,292) (13,189)
________ ________
Loss before income tax (28,832) (23,226)
Income tax 7 (1,011) (339)
________ ________
Loss for the year (29,843) (23,565)
Other comprehensive income:
Exchange differences on translating foreign operations (114) (294)
_______ _______
Total comprehensive income for the year (29,957) (23,859)
________ ________
Loss attributable to:
- Equity holders of the company (30,015) (22,718)
- Minority interests 172 (847)
________ ________
(29,843) (23,565)
________ ________
Total comprehensive income
attributable to:
- Equity holders of the company (30,096) (23,012)
- Minority interests 139 (847)
________ ________
(29,957) (23,859)
________ ________
Basic and diluted loss per share attributable
to equity holders of the parent (US$) 8 (0.276) (0.225)
________ ________
Consolidated Statement of Financial Position
Restated
As at As at
31 December 31 December
2009 2008
US$'000 US$'000
Assets
Non-current assets
Property, plant and equipment 67,622 72,065
Gas exploration and appraisal assets 625,244 643,589
Other intangible assets 21,743 23,999
Payment for leasehold land held for own use
under operating leases 282 233
Deferred tax asset 828 687
________ ________
715,719 740,573
________ ________
Current assets
Inventories 2,370 2,378
Trade and other receivables 7,107 3,196
Cash and cash equivalents 38,753 12,830
________ ________
48,230 18,404
________ ________
Total assets 763,949 758,977
________ ________
Liabilities
Current liabilities
Trade and other payables 17,527 18,796
Loans and borrowings 4,054 3,441
Convertible notes - 49,912
Derivative financial liability - 1,500
Current tax liabilities 847 1,075
________ ________
22,428 74,724
________ ________
Consolidated Statement of Financial Position (Continued)
Restated
As at As at
31 December 31 December
2009 2008
US$'000 US$'000
Non-current liabilities
Other financial liabilities 13,000 13,000
Deferred tax liability 151,939 151,515
________ ________
164,939 164,515
________ ________
Total liabilities 187,367 239,239
________ ________
Total net assets 576,582 519,738
________ ________
Capital and reserves
Share capital 12 11
Share premium 604,701 520,076
Convertible note equity reserve - 15,333
Share based payment reserve 4,010 1,835
Capital reserve 570 84
Foreign exchange reserve (629) (548)
Retained deficit (50,909) (35,741)
________ ________
Total equity attributable to equity holders of the Parent 557,755 501,050
Minority interests 18,827 18,688
________ ________
Total equity 576,582 519,738
________ ________
Consolidated Statement of Changes in Equity
Equity
attributable
Convertible Share based Foreign to equity
Share Share note equity payment Capital exchange Retained holders of Minority
capital premium reserve reserve reserve reserve deficit the Company interests Total
US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000
At 1 January 2008 9 440,737 20,831 - - (254) (12,939) 448,384 - 448,384
Total comprehensive income
for the year - restated - - - - - (294) (22,718) (23,012) (847) (23,859)
Placement of new shares
(net of issue costs US$943,000) 1 36,788 - - - - - 36,789 - 36,789
Issue of new shares by
conversion of convertible note 1 42,551 (5,498) - - - - 37,054 - 37,054
Share-based payments - restated - - - 1,835 - - - 1,835 - 1,835
Transfer to capital reserve - - - - 84 - (84) - - -
Minority interests' share of reserves
of jointly controlled entities - - - - - - - - 19,535 19,535
________ ________ ________ ________ ________ ________ ________ ________ ________ ________
At 31 December 2008 11 520,076 15,333 1,835 84 (548) (35,741) 501,050 18,688 519,738
________ ________ ________ ________ ________ ________ ________ ________ ________ ________
Total comprehensive income
for the year - - - - - (81) (30,015) (30,096) 139 (29,957)
Rights issue of new shares - 9,626 - - - - - 9,626 - 9,626
Placement of new shares 1 74,999 - - - - - 75,000 - 75,000
Share-based payments - - - 2,175 - - - 2,175 - 2,175
Transfer to capital reserve - - - - 486 - (486) - - -
Transfer of reserve upon
repayment of
convertible notes - - (15,333) - - - 15,333 - - -
________ ________ ________ ________ ________ ________ ________ ________ ________ ________
At 31 December 2009 12 604,701 - 4,010 570 (629) (50,909) 557,755 18,827 576,582
________ ________ ________ ________ ________ ________ ________ ________ ________ ________
Consolidated Statement of Cash Flows
Restated
Year ended Year ended
31 December 31 December
2009 2008
US$'000 US$'000
Operating activities
Loss before tax (28,832) (23,226)
Adjustments for:
Depreciation 5,955 2,611
Amortisation of leasehold land held for own use
under operating leases 26 16
Amortisation for intangible assets 2,472 457
Share based compensation 2,175 1,835
(Gain)/loss on disposal of property, plant and equipment (47) 2
Change in fair value of financial derivative (1,500) 1,500
Finance income (56) (929)
Finance costs 20,292 11,689
Foreign exchange differences 18 (242)
________ ________
Cash flows before changes
in working capital 503 (6,287)
Decrease/(increase) in inventory 8 (974)
(Increase)/decrease in trade and other receivables (3,596) 2,600
(Decrease)/increase in trade and other payables (2,198) 4,066
________ ________
Net cash used in operations (5,283) (595)
Income tax (payment)/refund (956) 430
________ ________
Net cash used in operating activities (6,239) (165)
________ ________
Investing activities
Payments for purchase of property, plant and equipment (2,291) (13,486)
Payments for intangible assets (27) -
Proceeds from disposal of property, plant
and equipment 397 -
Payments for leasehold land held for own use under
operating leases (72) (131)
Payments for exploration activities (11,554) (12,086)
Interest received 56 929
Cash paid on acquisition of subsidiary companies - (48,684)
________ ________
Net cash used in investing activities (13,491) (73,458)
________ ________
Consolidated Statement of Cash Flows (Continued)
Restated
Year ended Year ended
31 December 31 December
2009 2008
US$'000 US$'000
Financing activities
Proceeds from the issue of share capital 84,626 36,789
Proceeds from strategic farm-out 30,000 -
Repayment of short term loan - (3,684)
Repayment of convertible notes and related interest (69,861) (737)
Other interest paid (343) (245)
Proceeds from bank borrowings 1,542 -
________ ________
Net cash generated by financing activities 45,964 32,123
________ ________
Net increase/(decrease) in cash and
cash equivalents 26,234 (41,500)
Cash and cash equivalents at beginning of year 12,830 54,330
________ ________
39,064 12,830
Effect of foreign exchange rate changes (311) -
Cash and cash equivalents at end of year 38,753 12,830
________ ________
Abridged notes to the financial information for the year ended 31 December 2009
1 BASIS AND SEGMENT INFORMATION
Green Dragon Gas Ltd. ("the Company") is incorporated in the Cayman Islands. The financial statements have been prepared in accordance with IFRSs as adopted by the European Union, that are effective for accounting periods beginning on or after 1 January 2009. The principal accounting policies adopted in the preparation of the financial statements are disclosed in the Group's full annual report and accounts for the year ended 31 December 2009.
2 REVENUE AND SEGMENT INFORMATION
For the year ended 31 December 2009
Pipelined Gas Gas filling
Sale of gas stations equipment
CBM gas Well Drilling distribution sales sales Corporate Eliminations Consolidated
US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000
Segment revenue:
Sales to external
customers 2 - 36,693 8,362 1,849 - - 46,906
Inter-segment sales 228 14,337 - - - - (14,565) -
________ ________ ________ ________ ________ ________ ________ ________
230 14,337 36,693 8,362 1,849 - (14,565) 46,906
________ ________ ________ ________ ________ ________ ________ ________
Depreciation 44 1,839 3,767 167 16 122 - 5,955
________ ________ ________ ________ ________ ________ ________ ________
Amortisation - 48 - 1,914 495 15 - 2,472
________ ________ ________ ________ ________ ________ ________ ________
(Loss)/profit from operations (616) (1,792) 2,938 (291) (552) (8,776) (1,007) (10,096)
________ ________ ________ ________ ________ ________ ________ ________
Assets 688,151 47,924 59,017 25,236 6,137 314,264 (376,780) 763,949
________ ________ ________ ________ ________ ________ ________ ________
Liabilities 173,497 11,191 6,408 6,492 1,914 166,593 (178,728) 187,367
________ ________ ________ ________ ________ ________ ________ ________
For the year ended 31 December 2008
Pipelined Gas Gas filling
Sale of gas stations equipment
CBM gas Well Drilling distribution sales sales Corporate Eliminations Consolidated
US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000 US$'000
Segment revenue:
Sales to external
customers 33 - 19,188 4,059 1,369 - - 24,649
Inter-segment sales - 2,856 - - - - (2,856) -
________ ________ ________ ________ ________ ________ ________ ________
33 2,856 19,188 4,059 1,369 - (2,856) 24,649
________ ________ ________ ________ ________ ________ ________ ________
Depreciation 44 477 1,816 78 43 153 - 2,611
________ ________ ________ ________ ________ ________ ________ ________
Amortisation - - - 380 77 - - 457
________ ________ ________ ________ ________ ________ ________ ________
(Loss)/profit from operations-restated (745) (318) 1,284 708 241 (11,700) (436) (10,966)
________ ________ ________ ________ ________ ________ ________ ________
Assets 658,916 28,813 54,438 3,379 1,577 283,546 (271,692) 758,977
________ ________ ________ ________ ________ ________ ________ ________
Liabilities 200,039 14,101 9,242 1,032 1,035 191,219 (177,429) 239,239
________ ________ ________ ________ ________ ________ ________ ________
3 LOSS FROM OPERATIONS
Loss from operations is stated after charging:
Restated
Year ended Year ended
31 December 31 December
2009 2008
US$'000 US$'000
Staff costs (note 6) 8,277 5,399
Depreciation of property, plant and equipment 5,955 2,611
Operating lease expense (property) 457 798
Amortisation of leasehold land held for own use
under operating leases 26 16
Amortisation of intangible assets 2,472 457
Foreign exchange differences 18 242
________ ________
During the year the Group incurred Transaction costs of US$1,782,000 (2008: US$1,691,000) which relate to professional fees incurred in respect of fundraising and refinancing advice.
4 FINANCE INCOME
Year ended Year ended
31 December 31 December
2009 2008
US$'000 US$'000
Bank interest 56 929
Change in fair value of derivative financial liability 1,500 -
________ ________
1,556 929
________ ________
5 FINANCE COSTS
Year ended Year ended
31 December 31 December
2009 2008
US$'000 US$'000
Change in fair value of derivative financial liability - 1,500
Interest expense on other loans wholly repayable within five years 343 245
Accretion expense calculated using the effective interest
rate method 7,760 10,712
Accelerated finance charges 12,189 732
________ ________
20,292 13,189
________ ________
During the year ended 31 December 2009 the Company agreed to repay the US$45m convertible note in accordance with its terms and conditions. This accelerated a finance charge of US$12,189,000. On 7 December 2009 all outstanding principal and interest was repaid to the noteholder.
6 STAFF COSTS Restated
Year ended Year ended
31 December 31 December
2009 2008
US$'000 US$'000
Staff costs (including directors' emoluments) comprise:
Wages and salaries 5,146 3,758
Employer's national social security contributions 570 200
Share based payment 2,175 1,835
Other benefits 1,215 286
________ ________
9,106 6,079
Less: expenses capitalised as gas exploration and
appraisal assets (829) (680)
________ ________
Total staff costs charged to income statement (note 3) 8,277 5,399
________ ________
7 TAXATION
Year ended Year ended
31 December 31 December
2009 2008
US$'000 US$'000
Current tax
Charges for current year (728) (501)
Deferred tax
Temporary timing differences (424) -
Previously unrecognised deferred tax assets assessed
as recoverable at the end of the year 141 162
________ ________
Total tax charge (1,011) (339)
________ ________
8 LOSS PER SHARE
Loss per share is based on the loss attributable to ordinary equity holders of the Company of US$30,015,000 (year ended 31 December 2008 - US$22,718,000) and the weighted average of 108,857,034 ordinary shares in issue (31 December 2008 - 100,781,021) during the year.
Due to the loss arising in the Group during all periods the diluted loss per share is considered to be the same as the basic loss per share 116,425,836 potential ordinary shares (31 December 2008 - 113,872,445) have therefore been excluded from the above calculations.
9 DIVIDENDS
No dividend has been paid or declared by the Company during the year (2008: Nil).
10 EVENTS AFTER THE BALANCE SHEET DATE
There were no significant events that happened after 31 December 2009 up to the date of approval of these financial statements.
11 PUBLICATION OF NON-STATUTORY ACCOUNTS
The financial information for the years ended 31 December 2009 and 31 December 2008 set out in this announcement does not constitute the Group's statutory financial information but is extracted from the Company's audited financial statements for those years. The auditors have reported on the full accounts for both periods and their reports were unqualified and did not include references to any matters to which the auditors drew attention by way of emphasis without qualifying their reports.
12 ANNUAL REPORT
The Company's Annual Report and copies of this announcement will be available on the Company's website at www.greendragongas.com and from the office of the Company's nominated adviser, Smith & Williamson Corporate Finance Limited at 25 Moorgate, London, EC2R 6AY, United Kingdom.