2 December 2019  
 
 
 
 
 
 
G3 EXPLORATION LTD.
("G3 Exploration", "G3E" or the "Company")
 
Corporate Update 
On 19 November, Nordic Trustees AS ("Nordic") presented a petition in the Grand
Court of the Cayman Islands ("Petition") for the appointment of Alvarez and
Marsal as Joint Official Liquidators ("JOLs") of the Company. The Petition is
currently listed to be heard on 11 December 2019.  
The Company believes that the interests of all stakeholders (debt holders and
shareholders) are best served if Joint Provisional Liquidators ("JPLs"), rather
than JOLs, are appointed to facilitate the re-structuring of its assets and
on-going business. During the period of the provisional liquidation, the Company
would also benefit from a stay of proceedings, which will give the Company
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.
Thus, the Company filed an application with the Grand Court on 25th November,
2019 to request the appointment of JPLs.  Under the JPL application, 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 application for the appointment of the JPLs will also be
heard on 11 December 2019. If its application is successful, the Company expects
to continue as a going concern through this process and following the
re-structuring. 
 Notwithstanding these legal proceedings and the appointment of Receivers on
21st October, 2019, the Company continues as a going concern and has maintained
its operations and remains committed to re-structure as follows:
1.    Pay its Secured Creditors (Nordic and GIC) in full through either:
a.    A Reserve Based Loan ("RBL") of c.$200m through the Green Dragon Gas
producing assets. Active discussions to conclude such an arrangement with a bank
is underway; or 
b.    Sale of sufficient equity for cash in wholly owned Green Dragon Gas so as
to pay off creditors in full and have additional liquidity. Heads of Agreement
with interested party is expected in the near term.  A recent report, conducted
for the RBL in October, valued the producing Green Dragon Gas, GCZ and GSS
blocks at $485millon (1P) and $1.3 billion (2P).
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, "Over the past two
years, we have worked cooperatively, and constructively, with our Secured
Creditors on each of our initiatives to repay the debt due and look forward to
doing so with the JPL. 
We strongly encourage the appointment of JPLs so as to expedite a re-structuring
of the company for the benefit of all stakeholders, which would enable the
company to continue to deploy its technical expertise in the development of
complex CBM reservoirs globally and continue as a going concern."
 
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:
o   Focus on core intellectual aptitude in developing coal bed methane
o   Develop assets in an environmentally and socially prudent manner
o   Protect accreted shareholder value

Click here for more information

© Oslo Bors ASA, source Oslo Stock Exchange