12 December 2019
G3 EXPLORATION LTD.
('G3 Exploration', 'G3E' or the 'Company')
In update to the 2nd December, 2019 release, G3 Exploration is very pleased to announce the favourable ruling on its behalf in the Grand Cayman Court yesterday. In acceptance of the Company's application, the Grand Cayman Court accepted the appointment of Alvarez & Marsal as Joint Provisional Liquidators ('JPL') to work with the Board and Management in developing the re-structuring plan while the Nordic Trustee appointed Receiver is expected to concurrently assist the JPL in its duties. An Order is expected to be entered shortly.
In accordance to the Company's application and acceptance of the Court, the Board and Management shall continue to maintain the operations as a going concern and conclude the re-structuring plan with the JPL for submission to the Court.
As a result of this positive conclusion, the Company does not intend to apply for any trading suspension.
The Company successfully argued that the interests of all stakeholders (debt holders and shareholders) are best served by the JPL when appointed to facilitate the re-structuring of its assets and on-going business. During this period, the Company will also benefit from a stay of proceedings and give adequate time to restructure its assets and liabilities.
In view of the significant asset base and investments of over US$1billon in the development of its assets, the Company is seeking to re-structure its assets and liabilities in accordance with its previously announced business plan and believes that the JPLs will facilitate such execution to the benefit of all stakeholders. As such, the JPL appointment under the supervision of the Grand Court of the Cayman Islands is, in the opinion of the Board, the preferred path forward for the proposed restructuring of the Company and its subsidiaries. Under the JPL appointment, the directors will retain control of the day to day management of the Company while the JPLs can focus on identifying, facilitating and executing a comprehensive restructuring plan. The Company expects to continue as a going concern through this process and following the re-structuring.
The Board and Management look forward to working cooperatively with the JPL and remain committed to re-structure as follows:
1. Pay its Creditors (Nordic and GIC) in full
2. Following above execution, dividend Green Dragon Gas to the Shareholders.
3. Continue as an Exploration and Appraisal company specializing in Coal Bed Methane.
Mr. Randeep S. Grewal, Chairman of G3 Exploration commented, 'We are very pleased with the outcome of the hearing and await the final Order. We look forward to concluding the re-structuring plan with the appointed JPL and their valuable assistance and support in doing so. A successfully re-structured G3 Exploration rewards all stakeholders which the Board and Management are committed to deliver. This ruling allows the necessary time to do so and thereafter continue as a going concern.
Beyond this re-structuring, we are eager to get back onto our business plan which is committed to capture desorbed methane from complex coal seams in an environmentally prudent manner within select jurisdictions globally.'
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 409 BCF of 2P reserves and 2,085 BCF of 3P reserves across eight production blocks covering over 7,566km² 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 demonstrated expertise in gas monetisation 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