The producing assets have been consolidated into Green Dragon Gas, which will either be sold or listed in Hong Kong on 28 June.
Shareholders in G3 will get a stake in Green Dragon or cash if its assets can be sold before then.
Green Dragon owns stakes in Block GCZ (Chenghuang) in China, with proven probable reserves (2P) of US$157mln and Block GSS (Shizhuang South), where the proven reserves (1P) alone are worth an estimated US$580mln.
Money from any sale will be used in the first instance to pay off US$270mln of debt owing to G3E, which will enable it to clear US$150mln of Nordic bonds and convertible loans.
The remaining US$120mln will fund G3's development of the Guizhou Block (GGZ), which is scheduled to start production this year.
Randeep Grewal, G3’s executive chairman, said: "The approval of the Dividend in Specie, our third since 2006, is a landmark moment for G3 Exploration which will allow us to complete the planned separation of the producing assets from our exploration and development assets.
“Crucially, it provides a mechanism for us to return the value created within the producing blocks - where over US$1.3 billion has been invested by us with our partners - to our shareholders.”