OREANDA-NEWS. May 23, 2014. Green Dragon Gas's net 1P reserves have increased by 113% to 126 bn cu ft with a net present value of USD898m.

Net 2P reserves are up 22% at 382 bn cu ft but net 3P reserves have fallen by 5% to 2,382 bn cu ft.

The increase in audited reserve numbers and resulting NPV, incorporates the 1300 wells approximately drilled by the Company's partners across the acreage.

Drilled wells not in commercial gas production as of 2013 year-end, were not included by Netherland, Sewell & Associates Inc in its 1P and 2P categories.

Chairman and founder Randeep S. Grewal said: "The company is going through a transformational growth trajectory and this reserve audit values the paradigm shift at a static point, 31 December, 2013. With an equity interest in over 1800 wells which are in varying stages of commerciality, the reserve migration towards 1P will continue.

"The material transactions with CNOOC, CUCBM, PetroChina, CNPC and resulting beneficial economic benefits to Green Dragon from over USD 1 billion of deployed capex have been included by the independent reserve engineers when concluding the net present values in this audit of the forecasted revenues. We de-risked our large asset base by developing the LiFaBriC completion methodology in March 2008. The first such well, GSS008, just crossed its sixth anniversary of continuous gas production cumulating 717MMcf through 31 March 2014. This well's long term stable production is complemented by over fifty additional such wells within the GSS block.

"This year end reserve report acknowledges the superior LiFaBriC economics and returns from this completion method and are accordingly reflected in the net present values of the vast reserve base we control. Our commitment to voluntarily subject ourselves to this stringent independent audit by NSAI annually, complies with the corporate governance standards we pride ourselves in maintaining. Green Dragon has a track record of providing such transparency since 2006, the year we listed on AIM.

"We look forward to continuing our field successes and maintaining the seven year track record of reserves progression."