Green Dragon beats gas targets

China-focused Green Dragon Gas has topped its annual targets for gross production for coal-bed methane gas.

The London-listed group expanded gross production 36% to 12.12bn cubic feet per year (BCFPY), ahead of management's guidance of 12.0 BCFPY.

Chairman Randeep S. Grewal said the increase versus 2014 reflected the company and its partners' investment in infrastructure and the connection of wells to the production network from the existing 1,977 drilled wells.

"The increased production rate as we enter 2016 provides an excellent foundation to deliver growth and value for shareholders from domestic China which remains one of the world's most buoyant energy markets. We are truly excited about 2016 and beyond."

Grewal intends to make a full operations update in early February, providing operational guidance for 2016.

Green Dragon said it aimed to deliver a "step change" in production, continued improvement in the sales to production ratio and resulting cash generation.

Shares in the company rose 4.4% to 235p by 0900 GMT on Monday.