Green Dragon Gas (LON:GDG) revealed today it has raised just under US$103 million via an institutional share placing.
The proceeds will be used to accelerate its drill programme in the Shizhuang South block in China.
To do this it is buying an additional 25 drilling rigs, to complement the existing seven, with delivery set for the end of next year.
The group placed 8.8 million new shares, the equivalent to 7.3 per cent of its equity base, at a price of US$11.68 each.
The group is one of the largest independent producers and distributors of coal bed methane gas in the People’s Republic.
It revealed its desire to speed up the development process in an announcement last month when it said it had selected five manufacturers to quote for the supply of a fleet of drilling rigs.
In the same release, the company also announced the termination of the farm out agreement with ConocoPhillips (NYSE:COP). The deal was originally announced in August 2009.
Recently the group also announced it was going ahead with a Hong Kong main board listing in a move that ought to raise the company’s profile with Chinese institutional investors.