G3 Exploration shareholders on the register as of the effective date 29 March will receive a direct interest in Green Dragon Gas, the G3 subsidiary that holds the group’s producing assets.
The allotment will be on a 1 to 1 ratio, whereby one new Green Dragon Gas share will be allotted to each G3 Exploration share.
G3 Exploration will retain all of its exploration and development assets after the demerger.
As previously announced, G3 engaged bankers to explore ways of making money from Green Dragon Gas before the end of June. While the bankerS are still on the case, the board has directed that the listing of Green Dragon Gas on the Hong Kong Stock Exchange be pursued concurrently.
“Our current processes, trade sale or IPO [initial public offering], are committed to re-pay the group’s indebtedness as well as provide a mechanism for us to return the value created within the producing blocks to our shareholders,” said Randeep Grewal, the chairman and chief executive officer of G3.
"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," he added.