Uchenna Izundu
International Editor
LONDON, Mar. 31 -- Green Dragon Gas Ltd. has signed a conditional agreement with Pacific Asia China Energy Inc. (PACE) through its wholly owned subsidiary Greka China Ltd. to acquire PACE for $35.18 million (Can.).
PACE, listed in Vancouver, BC, has operations exclusively in China focused on coalbed methane through a production-sharing contract covering a 946-sq-km block in Guizhou province. The company also has a 50% interest in a joint venture drilling service company with exclusive rights to utilize Mitchell Drilling's Dymaxion horizontal drilling technology in China for degassing coal mines and exploiting CBM.
Green Dragon said PACE's board unanimously approved the transaction. Pace's offices in Vancouver will be shut following completion of the deal and its Beijing offices will be consolidated with Greka China.
Randeep S. Grewal, Green Dragon's chairman and chief executive, said the buyout would boost the company's CBM acreage in China. It also would the company's PSC acreage to 7,566 sq km making it the largest foreign CBM operator in China. Additionally, the PACE-Mitchell JV adds two Schramm rigs to the fleet of five ordered by Greka Technical Services providing commonality within rigs while enhancing the capability to drill horizontal wells.
Contact Uchenna Izundu at [email protected].
