G3 Exploration (G3E)

Business description

G3 Exploration is one of the largest independent companies involved in the production and sale of coal bed methane (CBM) gas in China.

Stock data

Market cap.£89m
Last close57.00p
High / Low (52 weeks)107.9p / 55.5p
Stock market listingLN
Forecast net debt (US$m)144.8
Forecast gearing ratio (%)23
TeamResources - Oil & Gas
SectorOil & Gas

Price performance

%1m3m12m
Actual(0.4)(10.2)(45.7)
Relative *(6.5)(6.7)(47.9)

* % Relative to local index

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Company news

Investment summary

G3 Exploration (formerly Green Dragon Gas) recently announced the signature of Supplementary Agreements with China United Coalbed Methane Corporation, a subsidiary of China National Offshore Oil Corporation (CNOOC), for the GSS and GSN blocks. The agreement resolves uncertainty over the allocation of historical costs. Management believes the agreement 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. In the short term, the focus is on a Hong Kong listing.

Last updated on 02/03/2018

Y/E Dec Revenue (US$m) EBITDA (US$m) PBT (US$m) EPS (c) P/E (x) P/CF (x)
2015A 37.7 20.1 (0.1) 0.0 N/A 10.0
2016A 29.1 10.5 (12.3) 0.0 N/A 14.6
2017E 31.9 16.1 (4.6) 0.0 N/A 15.1
2018E 51.3 35.1 7.3 0.0 N/A 7.0

Last updated on 26/02/2018

Latest research

Latest video

Executive Interview - Green Dragon Gas

Industry outlook

G3E’s gas price is largely driven by domestic policy; however, we expect that in the medium term, domestic regulated pricing will trend towards LNG import price parity. We assume that current realisations ($7.5/mcf as a blended average of CNG and PNG prices) will remain until 2018, beyond which it will track towards Chinese LNG import price parity.

Last updated on 02/03/2018

Key management

Randeep Grewal, Chairman & CEO
Alfred Yan, CFO

Company address

Suite 3308
Two Exchange Square
Hong Kong
+852 3710 068
View website