Company intends to use proceeds to acquire 25 additional drilling rigs
By Devika Patel
Knoxville, Tenn., Dec. 3 - Green Dragon Gas Ltd. said it concluded a private placement of stock. The deal raised $102.78 million.
The company sold 8.8 million ordinary shares at $11.68 apiece through agent CLSA Ltd. The per-share price reflects a 91.48% premium to the Dec. 2 closing share price of $6.10.
Proceeds will be used to acquire 25 additional drilling rigs.
"The company's upstream asset base continues to perform in line with our expectations and currently exceeds our year-end exit production target of 1 Bcf for 2010. More successful SIS wells have been drilled according to plan and placed on-line," chief executive officer Randeep S. Grewal said in a press release.
"The addition of the new drilling fleet will allow the company to meet its established targets. Following the successful conclusion of this placement and the resulting rig capacity increase, management will focus on fine tuning our drilling efficiency so as to enable materially more SIS wells to be drilled quicker at our Shizhuang South (GSS) Block in 2011 and beyond."
Green Dragon is a gas production company with offices in Beijing.
| Issuer: | Green Dragon Gas Ltd.
|
| Issue: | Ordinary stock
|
| Amount: | $102,784,000
|
| Shares: | 8.8 million
|
| Price: | $11.68
|
| Warrants: | No
|
| Agent: | CLSA Ltd.
|
| Settlement date: | Dec. 3
|
| Stock symbol: | Pink Sheets: GRDGF
|
| Stock price: | $6.10 at close Dec. 2
|
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