G3 Exploration Limited Dividend in Specie (7263D)
June 28 2019 - 2:01AM
UK Regulatory
TIDMG3E
RNS Number : 7263D
G3 Exploration Limited
28 June 2019
28 June 2019
G3 EXPLORATION LTD.
("G3 Exploration", "G3E" or the "Company")
Dividend in Specie
G3 Exploration Ltd. (LSE: G3E), an independent specialist in the
exploration and development of coal bed methane gas ("CBM") with
roots in China and a focus on international expansion, re-confirms
details of a Dividend in Specie for its production assets.
Dividend in Specie
G3 Exploration shareholders on the register as of the effective
date 29 March 2019 will receive a direct interest in Green Dragon
Gas ("GDG"), the Company's 100% owned subsidiary which holds its
producing assets. The allotment will be on a 1 to 1 ratio, whereby
one new GDG share will be allotted to each G3E share held as at the
Record date of 29 March 2019. The Dividend in Specie will represent
100% of the commercial producing assets and G3 Exploration will
retain all its exploration and development assets.
The structure will enable qualifying G3E shareholders to
potentially benefit from the free cash flow generated by the
producing assets whether via a trade sale or an IPO and separate
listing.
All G3E shareholders on 29 March 2019, the Effective Date, will
shortly be notified of their allocation for such dividend issuance
conditional upon approval of a public listing of GDG which is being
pursued in Hong Kong.
Monetisation of Production Assets
As announced on 30 January, the Company engaged Citigroup and
Credit Suisse to explore possible monetisation options for GDG
prior to 30 June 2019. While such efforts continue, the Board has
directed that the listing of GDG on the Hong Kong Stock Exchange be
pursued concurrently.
The producing assets include the GCZ and GSS Blocks. GCZ has a
1P NPV10 of US$72 million and a 2P NPV10 of US$157 million as at
the year-end 2018. The GCZ block has an approved Overall
Development Plan in current execution with partner CNPC-PetroChina.
The GSS block has a 1P NPV10 of US$ 580 million and a 2P NPV10 of
US$1.6 billion as at the year-end 2018.
Randeep S. Grewal, Executive Chairman, commented:
"The Board and Management are committed to concluding the
Dividend in Specie so as to facilitate the approved exploration and
commercial production separation of the current Group. Our current
processes, trade sale or IPO, are committed to re-pay the groups
indebtedness as well as provide a mechanism for us to return the
value created within the producing blocks to our shareholders.
"Upon completion, G3E should be well funded for its accelerated
exploration and development programme which continues to be our
core business and has been the foundation of the business for over
twenty years."
For further information on the Company and its activities,
please refer to the website at www.g3-ex.com or contact:
G3 Exploration Ltd
Randeep S. Grewal, Chairman and CEO +G3E@greka.com
VSA Capital Limited (Financial Adviser
and Corporate Broker)
Andrew Monk (Corporate Broking) +44 (0) 20 3005 5000
Andrew Raca (Corporate Finance) G3E@vsacapital.com
Yellow Jersey PR Limited
Tim Thompson +44 (0) 20 3004 9512
Harriet Jackson G3E@yellowjerseypr.com
Henry Wilkinson
About G3 Exploration Ltd.
G3E is a leading independent gas producer with operations in
China and is listed on the main market of the London Stock Exchange
(LSE: G3E). The Company has 377 Bcf of 2P reserves and 2,044 BCF of
3P reserves across eight production blocks covering over 7,566km(2)
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 has demonstrated perseverance in going the distance to monetise
shareholder value 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
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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