Green Dragon Gas, one of the largest independent companies involved in the production and sale of coal bed methane (CBM) gas in China, has announced its wholly owned subsidiary Greka Energy (International) has entered into three Supplementary Agreements with China United Coalbed Methane Corporation (CUCBM), a subsidiary of China National Offshore Oil Corporation (CNOOC), regarding three Production Sharing Contracts (PSC's) in China in the Shanxi, Anhui and Jiangxi regions.
These Supplementary Agreements confirms that exploration can commence across Fengcheng (GFC), Qinyuan (GQY) and Panxie East (GPX) Blocks. This complements the previous announcement released on 20th September 2017, which highlighted a Memorandum of Understanding on five PSC's. Furthermore, it was announced that two of the Supplementary Agreements on GSS and GSN PSC's were concluded. These agreements together with GFC, GQY and GPX conclude all five Supplementary Agreements.
Both Greka and CUCBM's priority is to maximise the value within its exploration PSCs and these agreements ensures the priority objective is expedited.
The remaining three PSC's have been finalised
PSC exploration period extended to Q2 2019
Minimum work commitment for each PSC identified and confirmed
Mr. Randeep S. Grewal, Founder & Chairman of Green Dragon Gas commented: 'These agreements conclude our five PSC's that have been in question over the past eight years, ensuring a committed close cooperation between CUCBM and Greka to unlock and monetise all our lucrative prolific gas Blocks. The detail within these Supplementary Agreements eliminates the ambiguity within the PSC's and provides a transparent and clear road map to conclude the exploration programme and progress to commerciality.
'We are committed to working closely with our partner CUCBM and concluding material reserve progressions in all our prolific Blocks. Both parties have significant experience of the Chinese CBM commerciality potential. Pooling such knowledge is an optimum partnership with collective rewards.
'Another milestone on our path to monetisation has been concluded. We are committed to keeping the market informed and will provide an update on further progress in the near term.'