China-focused coal bed methane gas specialist Green Dragon Gas saw a threefold increase in gas production in 2013.
The firm said total gas production for the year was 7.19billion cubic feet – up 304% from 2012 when production stood at 1.78billion cubic feet.
Green Dragon said standalone gas production in the final quarter of 2013 was up 1.5% on the previous quarter at 722million cubic feet, and up 42.6% on Q4 2012.
Total sales for the year increased by 71.1% to 1.53billion cubic feet, and Green Dragon said of the total gas produced 37.3% was sold with the remainder either used by Greka Engineering & Technology to generate electricity or temporarily flared where wells are not tied in.
“We saw overall production grow dramatically during 2013 and far exceed our initial estimates,” said chairman Randeep Grewal.
“With the discovery of drilling and the sale of gas by third parties on our acreage, we elected to hold investment in growth to minimums required under PSCs (production sharing contracts).”
He said the firm now recommended investment in organic growth to achieve its target exit rate for this year of 18billion cubic feet of gas, with growth in annual production driven by both drilled wells being tied into infrastructure and new wells being drilled.
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