PSC and supplementary agreement MoU

Green Dragon Gas (GDG) has announced that it has finalised a Memorandum of Understanding (MoU) on five production sharing contracts (PSCs) and two supplementary agreements with China United Coalbed Methane Corporation (CUCBM), a subsidiary of China National Offshore Oil Corporation (CNOOC) for the GSS and GSN blocks. Management believes the MoU is a material milestone for the company, and that joint co-operation with CNOOC on the exploitation of the GSS and GSN blocks should lead to enhanced gas sales and greater certainty of cash flows for equity and debt holders. Our valuation and financial forecasts are under review (last published figures are shown below).