G3 Exploration Limited Bond and Dividend Update (6708N)
25 Settembre 2019 - 3:49PM
UK Regulatory
TIDMG3E
RNS Number : 6708N
G3 Exploration Limited
25 September 2019
25 September 2019
G3 EXPLORATION LTD.
("G3 Exploration", "G3E" or the "Company")
Bond and Dividend Update
G3 Exploration Ltd. (LSE: G3E), an independent specialist in the
exploration and development of coal bed methane gas (CBM), with
roots in China and a focus on international expansion, announces
that the Nordic Trustee, the Trustee for its 10% Senior Secured
Callable Bonds, has called a Nordic Bond Holders informational
conference call on Monday 30(th) September at 1330 BST .
The Nordic Trustee AS (as bond Trustee in the above mentioned
bond issue) intends to provide Bondholders with information on the
current status of the Bond and to allow Borrelli Walsh, its
recently appointed receivers to the Company's subsidiary Greka Gas
China Ltd, to provide an update on the restructuring options
currently being considered with the Company.
The Company previously announced a Dividend in Specie to its
shareholders of record on 29(th) March, 2019 in order to provide
them with a direct interest in Green Dragon Gas ("GDG"), the 100%
owned subsidiary which holds all of the Company's commercially
producing assets. Following the Dividend in Specie, which requires
the Nordic and Convertible Bond Holder consents or repayment prior
to issuance, the Company will retain all of its exploration and
development assets and continue to focus on executing its core
exploration and appraisal strategy.
In accordance with the previously announced execution plan, GDG
is working with its bank and advisors to place a Reserve Based Loan
("RBL") which, if successful, will enable GDG to repay the Company
sufficient proceeds in respect of its existing $270m intercompany
loan so as to enable repayment to the Bond holders by the
Company.
Randeep S. Grewal, Executive Chairman, commented:
"We believe that the intended GDG Dividend in Specie, which was
announced earlier this year, continues to be the most attractive
route to unlocking the potential of G3E. Today's announcement
demonstrates that we are continuing to seek a solution which will
satisfy bondholders and unlock the remaining potential for G3E
shareholders.
Part of the rationale for the Dividend in Specie is to enable
the current balance sheet constraints to be resolved and in order
to proceed we must gain approval from the Bond Holders who put up
capital for the development of the now producing assets. The RBL
placement will enable the repayment of the outstanding debt to our
Bond Holders and therefore an opportunity to favourably satisfy our
balance sheet objectives. The Dividend in Specie will then enable
G3E to focus on its core specialty of exploration and appraisal
whilst shareholders can choose to retain exposure to the now
producing assets."
For further information on the Company and its activities,
please refer to the website at www.g3-ex.com or contact:
G3 Exploration Ltd +852 3710 0088
VSA Capital Limited (Financial Adviser
and Corporate Broker)
Andrew Monk (Corporate Broking)
Andrew Raca (Corporate Finance) +44 (0)20 3005 5000
About G3 Exploration Ltd.
G3E is a leading independent gas producer with operations in
China and is listed on the main market of the London Stock Exchange
(LSE: G3E). The Company has 377 Bcf of 2P reserves and 2,044 BCF of
3P reserves across eight production blocks covering over 7,566km(2)
of license area in the Shanxi, Jiangxi, Anhui and Guizhou
provinces. It holds six Production Sharing Agreements with strong,
highly capitalised Chinese partners including CNOOC, CNPC and
PetroChina, and has infrastructure in place to support multiple
routes to monetise gas production.
The company is committed to an exploration and appraisal focused
business plan in coal bed methane development across three
geographies concurrently. It has a well-established track record
and has demonstrated perseverance in going the distance to monetise
shareholder value through three basic principles:
-- Focus on core intellectual aptitude in developing coal bed methane
-- Develop assets in an environmentally and socially prudent manner
-- Protect accreted shareholder value
This information is provided by RNS, the news service of the
London Stock Exchange. RNS is approved by the Financial Conduct
Authority to act as a Primary Information Provider in the United
Kingdom. Terms and conditions relating to the use and distribution
of this information may apply. For further information, please
contact rns@lseg.com or visit www.rns.com.
END
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