CHINA-focused coal seam gas producer Green Dragon Gas says a higher production rate recorded in 2015 bodes well for the coming year.
Green Dragon recorded a 2015 exit rate of 12.12 billion cubic feet of gas per year, above its gross production target for the year.
Ahead of an operations update scheduled for February, company chairman Randeep S. Grewal said this return was 36 per cent higher than the group’s production levels in 2014.
This reflected as focus on the development of infrastructure and the connection of the existing 1,977 drilled wells to its production network, he said.
“The increased production rate as we enter 2016 provides an excellent foundation to deliver growth and value for shareholders from domestic China which remains one of the world’s most buoyant energy markets,” he said.
“We are truly excited about 2016 and beyond.”
Green Dragon’s February operations update will provide a guidance for 2016 as the group looks to improve its sales to production ratio, it said in an announcement.
However, the company also told investors in November that coal seam gas enjoyed stable pricing in China with lucrative profit margins remaining, meaning Green Dragon was unaffected by downturns in the oil price.