G3 Exploration Ltd (LON:G3E) chairman Randeep Grewal told investors that the company is now working closely with partners to rapidly advance producing wells, focusing on monetising natural gas sales.
The company, which has gone through significant change, today reports financial results for the twelve months ended December 31.
During the year it was agreed that the business now known as G3E would be spun-out from the Green Dragon Gas company. The decision coincided with new arrangements stuck with the China-focussed gas firm’s partners.
Financial results released today showed US$25.7mln of revenue, including contributions from discontinued downstream operations, while, earnings (EBITDA) amounted to US$15.2mln.
The business generated a total of US$17.5mln of cash in the period, and, it reported a US$24.6mln net loss of which 53% is attributable to discontinued downstream business (now fully impaired and classified as held for sale).
"The year ended with rewarding conclusions, as we finalised the long overdue agreements with our partner CNOOC, which were executed in September 2017,” Grewal said.
He added: “These supplementary agreements confirmed all the company's rights, title and interest across our PSC Area.
“Since the signing of the agreements, we have been working closely with our partners to rapidly advance the producing wells, focusing on monetising natural gas sales; which commenced in H2 2017.
"Our producing GCZ Block (partner CNPC) continued its commercial natural gas sales while the collaborative Joint Operating Team concluded its ODP.
“The plan approved by CNPC in October 2017, commits the drilling of an additional 147 wells by year end 2019 and gross capex of US$54 million.”
"Exploration assets at the GGZ Block were boosted by a successful 12 well drilling programme at the end of 2017. The natural gas block in partnership with PetroChina is a focused asset, which is expected to have reserves certified in 2018 and commence test natural gas sales by H2 2018.