G3 Exploration Regulatory News (G3E)

26 Nov 2007 07:01

Green Dragon Gas Ltd26 November 2007 26 November 2007 GREEN DRAGON GAS LTD. ("Green Dragon" or "the Company") LAUNCH OF TECHNICAL SERVICES DIVISION - Five Drilling Rigs Ordered and 100 New Technical Staff Hired Green Dragon Gas Ltd. (AIM: GDG), the Chinese coal bed methane ("CBM") business,today announces the launch of its own in-house drilling and technical servicesdivision and that it has placed an order for five CBM-specific drilling rigs.The services division, which will be known as Greka Technical Services, is to bebased in Zhengzhou which is being established as the operational hub for theCompany's upstream operations. The five technically advanced CBM rigs are beingmanufactured in the United States to the Company's own specifications and areexpected to be delivered in the second quarter of 2008. Greka Technical Services will operate as an independent profit center within theGreen Dragon Gas group. To date 100 local technical staff have been hired to manthe rigs and are expected to join the Company when the rigs are delivered. Inaddition, selected key experienced management personnel will be hired prior tothe upcoming Chinese New Year, to ensure a successful launch in the secondquarter of 2008. Mr. Randeep S. Grewal, Chairman and CEO, comments, "The launch of the Greka Technical Services division represents a furthersignificant milestone in the Company's continued progress towards being avertically integrated gas supplier. "The CBM drilling rigs, together with the additional experienced technicalstaff, will enhance our control over our drilling programme and assist inimproving our drilling efficiency and productivity, whilst also ensuring that wecontrol our exposure to the increasing costs of contract drilling services. "We expect to focus on setting up and structuring the division in the first halfof 2008, with the intention for it to become fully operational in the secondhalf of the year." For further information on the Company and its activities, please refer to thewebsite at www.greendragongas.com or contact: Randeep GrewalChairman and Chief Executive, Green Dragon Gas Ltd.+852 3710 0168 Tim Thompson/ Nick Melson/ Susannah GaleBuchanan Communications+ 44 (0)20 7466 5000 Dr Azhic Basirov/ David JonesSmith & Williamson Corporate Finance Limited+44 (0)20 7131 4000 This information is provided by RNS The company news service from the London Stock Exchange