Interim Results October 2019 - G3 Exploration/media/Files/G/Green-Dragon-Gas/...-5-Assets in Commercial Chinese CBM Basins. Blocks’ summary Geographic location. GSS •Greka Interest:

Interim ResultsOctober 2019

This presentation does not constitute an invitation to underwrite, subscribe for, or otherwise acquire or dispose of any shares of G3 Exploration Ltd. (the“Company”) in any jurisdiction. The Company’s shares have not been and will not be registered under the US Securities Act of 1933 (the “Securities Act”)and may not be offered or sold within the United States absent registration under the Securities Act or an exemption from registration.

The information contained in this presentation is given in good faith but no representation or warranty is made in relation to the accuracy orcompleteness of the information, or any oral information provided in connection therewith, or the data it generates and no responsibility, obligation orliability is or will be accepted by the Company or its affiliates or advisors or by any of their respective officers, employees or agents in relation to it.

This presentation contains certain forward looking statements with respect to the financial condition, results, operations and businesses of the Company.The statements and forecasts involve risk and uncertainty because they relate to events and depend on circumstances that will occur in the future. Thereare a number of factors that could cause actual results or developments to differ materially from those expressed or implied by these forward lookingstatements and forecasts.

Past performance is no guide to future performance and persons needing advice should consult an independent financial advisor.

This presentation and the information contained in it are confidential and should not be distributed, published or reproduced, in whole or in part, ordisclosed by recipients directly or indirectly to any other person.

Disclaimer

-3-

OverviewOperational highlightsFinancial highlights2019 outlookAppendix

Table of contents

-3-STRICTLY CONFIDENTIAL & PROPRIETARY

SUBJECT TO CONFIDENTIALITY AGREEMENTS

-4-

• Two producing assets selling gas at high margins, including government subsidies which highlights their support for increased production

• Large acreage, with substantial gas reserves, located inland and well positioned to serve the main manufacturing and population centres of the world’s largest energy consumer

• Attractive PSCs, protected by Holland-PRC bilateral treaty, providing gas, mainly to large SOEs onlong-term GSAs, at prices insulated from international markets

High margin gas production in

China

Well established operations

positioned for growth

Strengthened corporate and

operational management

• Drilling and completion techniques tailored to deal with the brittle coal and faulted geology of China -LiFaBriC

• Gas production to increase significantly with further development drilling and by implementing well-completion upgrades and production optimisation of existing well stock

• Sales ramp up supported by enhanced well-to-market infrastructure and increased processing capacity

• Highly experienced operational team with strong track record within coal bed methane

• Corporate management team strengthened with solid energy sector expertise

• High quality shareholder base including Aberdeen, Clermont, Fidelity, GAGH, GIC and Platinum Asset Management

-4-

Summary

STRICTLY CONFIDENTIAL & PROPRIETARYSUBJECT TO CONFIDENTIALITY AGREEMENTS

-5-

Assets in Commercial Chinese CBM Basins

Blocks’ summary Geographic location

GSS• Greka Interest: 60%1

• Partner: CNOOC• Operator: Greka• Total: Wells 1,328 wells2

GCZ• Greka Interest: 47%• Partner: PetroChina• Operator: PetroChina• Total Wells: 114 wells2

GSN• Greka Interest: 50%• Partner: CNOOC• Operator: CNOOC• Total Wells: 192 wells2

GQY (B)• Greka Interest: 60%• Partner: CNOOC• Operator: Greka• Total Wells: 37 wells2

GFC• Greka Interest: 49%• Partner: CNOOC• Operator: Greka• Total Wells: 31 wells2

GPX• Greka Interest: 60%• Partner: CNOOC• Operator: Greka• Total Wells: 12 wells2

GGZ• Greka Interest: 60%• Partner: PetroChina• Operator: Greka• Total Wells: 45wells2

Capital of Province

Group Coalbed Methane Blocks

P

D

EA

Production

Development/Pilot Stage

Exploration and Appraisal

Xinjiang

Tibet

QinghaiGansu

Ningxia

Sichuan

Yunnan GuangxiGuangdong

Hong Kong

Fujian

Zhejiang

Shanghai

Jiangsu

Shandong

TianjinBeijing

Liaoning

Inner Mongolia

Jilin

Heilongjiang

Hainan

Chongqing

Hubei

Shaanxi

Hunan

Henan

Guizhou

Anhui

Shanxi

Jiangxi

Baotian-Qingshan Block (GGZ) 947km2

Qinyuan Block (GQY A&B)3,665km2

Shizhuang North Block

(GSN) 375km2

Shizhuang South Block

(GSS)388km2

Chengzhuang Block (GCZ)

67km2

Panxie East Block (GPX)

584km2

Fengcheng Block (GFC)

1,541km2

P

P

EA

EA

D

GQY (A)• Greka Interest: 10%• Partner: CNOOC• Operator: CNOOC• Total Wells: 32 wells2

Notes:1. Can be increased to 70% on option exercise2. Includes non-operated wells

Gre

en D

rago

n G

asG

3 Ex

plor

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n

STRICTLY CONFIDENTIAL & PROPRIETARYSUBJECT TO CONFIDENTIALITY AGREEMENTS-5-

D

EA

-6-

Overview – H1 2019 Operational Achievements


SUBJECT TO CONFIDENTIALITY AGREEMENTSSource: Company1. IPF: Integrated Production Facility (Gas Mother Stations in GSS and GCZ block)

Total exit gas sales of 6.38 Bcf from producing assets

GSS & GCZ drilled wells 1486, online wells 1156, infrastructure connected wells 1110

GSS infrastructure build on schedule; 21 new wells online, 53 new wells connected to infrastructure

81% CNOOC drilled wells online, 97% CNOOC online wells connected to infrastructure

4 IPF1 operational ; 1 in test run, 3 under construction

65 wellhead compressors; GSS 51 units, GCZ 14 units

35 upstream production workovers performed on operated wells

GCZ ODP implementation 2019

Exploration – G3E

Production – GDG

Guizhou block exploration program ongoing; 6 wells online, Chinese reserve report successfully submitted

Jiangxi and Anhui exploration blocks development potential re-assessed with high prospective acreage identified

Exploration activities continued on non-operated areas; 12 wells producing in Shizhuang North, 400sqkm of seismic and an additional 14 wells drilled in Qinyuan block

-7-

GDG Overview – H1 2019 Financial Achievements



RevenueU$11.0 million

EBITDAUpstream Business

U$7.2 million

Net ProfitUpstream Business

U$4.2 million

Sales PriceGCZ $9.2/McfGSS $8.9/Mcf

Net AssetsGDG - U$342 millionG3E – U$621 million

Source: Company

-8-

GFCNet: 25PV10:

US$326m

GSNNet: 672PV10:

US$3,221m

GFCNet: 229PV10:

US$3,015m

GQYNet 2C: 32

GQYBest Est: 736

GFCBest Est: 209

GPXBest Est: 15

GGZBest Est: 368

Net: 5BcfPV10: US$29mCapex: USD3m

Net: 71 BcfPV10: US$816mCapex: USD86m

Net: 1,002 BcfPV10: US$7,648mCapex: USD498m

Net 2C: 668 Bcf

Best: 1,328 Bcf

GSNNet: 17PV10:

US$85m

GGZNet: 29PV10:

US$404m

GGZNet: 101PV10:

US$1,412m

GGZNet 2C: 636

-8-

Source: Company estimates as of yearend 2018.Note: Net gas reserves and NPV estimates are based on company's participating interest in the blocks.Note: 5% escalation applied per year to future operating costs, capital costs and sales prices.

G3E – Six Exploration blocks - 2P US$816 million

GGZNet: 1PV10:

US$6m

Contingent

Prospective

1P

2P

3P

GSNNet: 4.6PV10:

US$23m

G3E net 2P reserves of 71 bcf with PV10 value of US$816 million

-9--9-

GDG – Two Production blocks - 2P US$1.6 billion

3P

GSSNet: 303PV10:

US$1,495m

GSSNet: 1,023

PV10:US$4,686m

GSSNet: 114PV10:

US$581m

GCZNet: 60 Bcf

PV10:US$255m

GCZNet: 15 Bcf

PV10:US$72m

GCZNet: 35 Bcf

PV10:US$157m

1P

Net: 129 BcfPV10: US$653mCapex: USD49m

Net: 338 BcfPV10:

US$1,653mCapex: USD141m

Net: 1,083 BcfPV10: US$4,942mCapex: USD630m

2P

GDG net 2P reserves of 338 bcf with PV10 value of US$1.6 billion

Source: Company estimates as of yearend 2018. Average gas price US$8.98/Mcf for producing blocks. USD/RMB FX Ratio of 6.8.Note: Net gas reserves and NPV estimates are based on company's participating interest in the blocks.Note: 5% escalation applied per year to future operating costs, capital costs and sales prices.

-10-


Table of contents



-11-

Guizhou Block Moving Towards First Gas



3,264

1,130 1,141 1,179

762 775 884 1,066

840

380360

552

290 300

380400

0

100

200

300

400

500

600

700

800

900

-

500

1,000

1,500

2,000

2,500

3,000

3,500

BQ 19 BQ18E BQ16 D1 BQ1D1 BQ2 BQ17 BQ16E BQ16 D1

Peak production ( m3/day) Casing pressure (Kpa)

De-risked 7 major coal seams

8 wells realized commercial gas rates

3P reserves $ 1,412 million

First Sales in 2019

Location Guizhou Province

PSC Area 947 km2

G3E Working Interest 60% (operator)

Chinese Partner PetroChina

PSC Expiry 2035

GIIP 6,041 Bcf

Wells Drilled 45 + 585 (slim holes)

Major Coal Seams Seven major coal seams

Wells Produced 15 wells

1P (net volume/PV10) 1 bcf / $6 million

2P (net volume/PV10) 29 bcf / $404 million

3P (net volume/PV10) 101 bcf / $1,412 million

Chinese Reserves Report Submitted to PCCBM

Source:Company data as of 30th September 2019

-12--12-STRICTLY CONFIDENTIAL & PROPRIETARY


GDG – Producing Assets Located in Prolific Qinshui Basin

GSS Block GCZ BlockLocation Shanxi Province Shanxi Province

PSC Area 388 km2 67 km2

G3E Working Interest 60% (operator)* 47%Chinese Partner CNOOC PetroChinaGIIP 3,155 Bcf 297 BcfEquity Wells 1,328 114Major Coal Seams Two major coal seams Two major coal seams1P (net volume/PV10) 114 bcf / $581 million 15 bcf / $72 million2P (net volume/PV10) 303 bcf / $1,495 million 35 bcf / $157 million3P (net volume/PV10) 1,023 bcf / $4,686 million 60 bcf / $255 million


-13--13-

GDG – 1486 Wells Drilled, 97% of CNOOC Online Wells Connected to Sales Channels


GSS Greka• Gas sales increment from existing

wells • Application of continuous

compression at wellheads• 51 compressors available, 47

installed to the sales gathering system

• One mother station operational

GSS CNOOC• Infrastructure construction and

pipeline connections ahead of schedule

• Two mother stations operational• 81% of drilled wells are online• 97% of online wells are connected to

sales channels

CNPC• 14 wellhead compressors running to

reduce wellhead pressures• Targeting coal seam 15 to increase

sales volumes from existing wells• ODP implementation in progress• 44 new wells were completed; 4

wells are in drilling• Daily gas rate of 23 new on line

wells has reached 1,295 mcf/d

Total Wells

CNOOC Operated 1,128

209

891

482

28 18

70

112

106

200

919 130

Pending completion

Pending completionOnlineOnline

Infrastructure Connected

Sales Wells Sales Wells

0

46

112

103

158

112

Pending completionOnline

Sales Wells

1,486

GDGOperated

CNPC Operated




Dewatering and will be connected

to sales infrastructure





-14--14-

Monthly Sales VolumesGDG – Gas Sales Track Record

143 162 156

175 161 162 160 171

174 164 169 145

125 126 139

152 152 157 153 156 149 147 149 140 136 150

130 144 137 140 135 134

119

105 105 105 105 105 105 105 105 105 105 105 105 105 105 106 106 106 106 106 106 106 106 106 106 106 106 106 106 106 106 106 106

0

20

40

60

80

100

120

020406080

100120140160180200220

Jan-

17Fe

b-17

Mar

-17

Apr-

17M

ay-1

7Ju

n-17

Jul-1

7Au

g-17

Sep-

17O

ct-1

7N

ov-1

7De

c-17

Jan-

18Fe

b-18

Mar

-18

Apr-

18M

ay-1

8Ju

n-18

Jul-1

8Au

g-18

Sep-

18O

ct-1

8N

ov-1

8De

c-18

Jan-

19Fe

b-19

Mar

-19

Apr-

19M

ay-1

9Ju

n-19

Jul-1

9Au

g-19

Sep-

19

GDG Sales (Mmcf) GDG Gas Selling Wells


65 60 68 59 73 81 83 90 90 95 87 85 95 91

101 109 126 135

148 154 154 171 177 184

195 172

207 208 238

222 252 257 257

324 324 324 324 324 324 324 330 330 330 330 330 330 330 330 330 330 330354 354 354 354 354 354 354

398 398 402429

441 445

482 482

100

150

200

250

300

350

400

450

500

020406080

100120140160180200220240260280

Jan-

17Fe

b-17

Mar

-17

Apr-

17M

ay-1

7Ju

n-17

Jul-1

7Au

g-17

Sep-

17O

ct-1

7N

ov-1

7De

c-17

Jan-

18Fe

b-18

Mar

-18

Apr-

18M

ay-1

8Ju

n-18

Jul-1

8Au

g-18

Sep-

18O

ct-1

8N

ov-1

8De

c-18

Jan-

19Fe

b-19

Mar

-19

Apr-

19M

ay-1

9Ju

n-19

Jul-1

9Au

g-19

Sep-

19

CNOOC Sales (Mmcf) CNOOC Gas Selling Wells

457 451 474 478 485 482 489

499 489 490 475 448

431 401

447 457 482 482 491 496 484 498 498 496 496 468

504 512 538 524

556 564 550

514 514 514 514 514 514 514 520 520 520 520 520 520 520 521 521 521 521

545 545 544 544 544 544 544

588 588 592

621 632

646

687 691

450

500

550

600

650

700

020406080100

120140160180200220240260280300320340360380400420440460480500520540560580600620640660680700

Jan-

17Fe

b-17

Mar

-17

Apr-

17M

ay-1

7Ju

n-17

Jul-1

7Au

g-17

Sep-

17O

ct-1

7N

ov-1

7De

c-17

Jan-

18Fe

b-18

Mar

-18

Apr-

18M

ay-1

8Ju

n-18

Jul-1

8Au

g-18

Sep-

18O

ct-1

8N

ov-1

8De

c-18

Jan-

19Fe

b-19

Mar

-19

Apr-

19M

ay-1

9Ju

n-19

Jul-1

9Au

g-19

Sep-

19

Consolidated Sales (Mmcf) Gas Selling Wells

249 229

251 244 250 239 246 239 224 231 219 218 211 184

206 195 203 190 190 186 181 180 172 172 166 146

166 161 163 163 170 173 174

85 85 85 85 85 85 85 85 85 85 85 85 85 85 85 85 85 85 85 85 84 84 84 84 84 84 84 8486 85

95

99

103

556065707580859095100105

020406080

100120140160180200220240260280

Jan-

17Fe

b-17

Mar

-17

Apr-

17M

ay-1

7Ju

n-17

Jul-1

7Au

g-17

Sep-

17O

ct-1

7N

ov-1

7De

c-17

Jan-

18Fe

b-18

Mar

-18

Apr-

18M

ay-1

8Ju

n-18

Jul-1

8Au

g-18

Sep-

18O

ct-1

8N

ov-1

8De

c-18

Jan-

19Fe

b-19

Mar

-19

Apr-

19M

ay-1

9Ju

n-19

Jul-1

9Au

g-19

Sep-

19

CNPC Sales (Mmcf) CNPC Gas Selling Wells

-15--15-

GDG – GCZ ODP Implementation going smoothly

Source: Company

Block area; 67 km², ODP covers; 33 km²

GIIP; 297 Bcf, EUR; 176 Bcf

158 wells drilled, 103 online selling gas wells, 14 compressors installed

Drill additional 103 production wells in 2019 Q4/2020 to complete t 147 wells in the ODP Plan approved by NDRC at end of 2018.

Total future development cost; c. US$55 million, CNPC and Company to invest according to participating interest

44 wells have been completed till Aug, 4 wells are on going and will be completed in Oct. 23 new wells have been put on Line, gas rate has increased to 1,295 mcf/d.

GCZ is a commercial gas producing block which has been profitable since September 2015 and continues to be so

Block is jointly operated by CNPC and the Company through a Joint Management Team based in Jincheng, Shanxi

Well sites civil work Well sites civil work

Production wells workover

HSE inspection Production site

HSE inspection

-16--16-

Focus on infrastructure built and connections of existing well stock to sales channels

Source: Company data as of 30th September 2019IPF: 3 online, 1 test run, 3 in construction

Online IPF

• Three mother stations (IPF) operational, one in test run

• 112 Greka wells connected to sales channels

• 891 CNOOC wells connected to sales channels

• Total of seven IPFs to be operational by yearend 2019/2020

• Infrastructure construction progress is monitored through quarterly arranged JMC Wells need infrastructure connections

Test run IPF In construction IPF

-17--17-

GSS GDG Well GSS Greka IPF

GSS Greka Compressor

GSS Block – Field Operations

GSS GDG Wellhead

Source: Company

-18--18-

GSS IPF - 2

GSS IPF - 3 GSS IPF - 4

GCZ IPF - 1

GDG – Infrastructure Build: Last Milestone

Source: Company

Operational Operational

Operational Operational

-19--19-

GSS IPF - 8

Satellite imageLand lease acquired, civil work in progress

GSS IPF - 6

Satellite imageLand lease acquired, civil work in progress

GSS IPF - 7

Satellite imageLand lease in progress

GSS IPF - 5

IPF completed,under test run

GDG – Infrastructure Built: Last Milestone

Source: Company

-20-


Table of contents





GDG - Highlights of Financial Performance

Source: Company

(US$ million) H1 2019Revenue 11.0Cost of sales (3.0)Gross profit 8.0Margin 73%Other income 0.1SGA (0.9)DDA (3.0)Profit from operations 4.2Margin 38%Finance costs - PBT 4.2Income tax - Net profit 4.2EBITDA 7.2

GDG

GDG

(US$ million)H1 2019H1 2018%20172016

Revenue11.013.7(20%)27.128.8-6%-6%

Cost of sales(3.0)(3.5)(14%)-8.8-8.9-1%-1%

Gross profit8.010.2(22%)18.319.9-8%-8%

Margin73%74%(2%)68%69%-2%-2%

Other income0.10.2(50%)0.21.7-88%-88%

SGA(0.9)(1.7)(47%)-3.3-1.6106%>100%

DDA(3.0)(3.4)(12%)-7.6-3.4124%>100%

Profit from operations4.25.3(21%)7.616.6-54%-54%

Margin38%39%(1%)28%58%-30%-30%

Finance costs- 0- 0000

PBT4.25.3(21%)7.616.6-54%-54%

Income tax- 0- 0- 02.30100%100%

Net profit4.25.3(21%)9.916.6-40%-40%

EBITDA7.28.7(17%)15.219.9-24%-24%

Dep(3.0)(3.4)-5.3-3.3

G3E

G3EFor the period ended 30 June

(US$ million)20182017%%

Revenue- 0- 0- 0

Cost of sales - 0- 0- 0

Gross profit- 0- 0- 0

Other income- 0- 0- 0

SGA(1.6)(1.7)(6%)(4.1)(5.0)(18%)

DDA - 0- 0- 0- - -

Loss from operations(1.6)(1.7)(6%)(4.1)(5.0)(18%)

Net finance costs (9.2)(2.6)(>100%)(13.0)(16.5)21%

LBT(10.8)(4.3)(>100%)-1710%-2150%21%

Income tax - 0- 0- 0- - -

Net (loss) from continuing operation(10.8)(4.3)(>100%)(17.1)(21.5)21%

Net (loss)/profit from discontinued operation 4.54.7(3%)(7.5)9.4(>100%)

Net loss for the year(6.3)0.4(>100%)(24.6)(12.1)(>100%)

G3E Asset

G3EFor the period ended

(US$ million)30 June 201831 December 2017%20172016%

Property, plant and equipment0.30.0>100%-272.6-100%

Gas exploration and appraisal assets613.8617.9(1%)617.91,034.10-40%

Assets of disposal group classified as held-for-sale372.0380.1(2%)380.1-100%

Total assets 996.91,009.2(1%)1,009.201,343.50-25%

Convertible notes55.953.15%53.147.312%

Bonds104.095.98%95.988.88%

Liabilities of disposal group classified as held-for-sale50.050.5(1%)50.5-100%

Total liabilities 345.2337.42%337.4704.5-52%

Total equity 651.6671.8(3%)671.86395%

GDG Asset

GDGFor the period ended

(US$ million)30 June 201831 December 2017%2016

Property, plant and equipment140.4141.4(1%)272.6

Gas exploration and appraisal assets216.3223.7(3%)1,034.1

Total assets369.4377.5(2%)1,343.5

Trade and other payables18.519.1(3%)47.3

Deferred tax liabilities28.928.80%88.8

Total liabilities47.547.9(1%)704.5

Total equity321.9329.6(2%)639.0



GDG - Highlights of Financial Performance

Source: Company

(US$ million) H1 2019 YE 2018 %

Property, plant and equipment134.3 132.9 1%

Gas exploration and appraisal assets 237.7 236.6 0%

Total assets391.8 389.5 1%

Trade and other payables20.4 19.2 6%

Deferred tax liabilities29.1 29.1 0%

Total liabilities49.5 48.3 2%

Total equity 342.3 341.2 0%

GDG

GDGFor the period ended 30 June

(US$ million)20182017%20172016

Revenue (No elimination)13.711.222%27.128.8-6%-6%

Cost of sales(3.5)(4.5)(22%)-8.8-8.9-1%-1%

Gross profit10.26.752%18.319.9-8%-8%

Margin74%60%24%68%69%-2%-2%

Other income0.20.20%0.21.7-88%-88%

SGA(1.7)(0.8)>100%-3.3-1.6106%>100%

DDA(3.4)(1.6)>100%-7.6-3.4124%>100%

Profit from operations5.34.518%7.616.6-54%-54%

Margin39%40%(1%)28%58%-30%-30%


PBT5.34.518%7.616.6-54%-54%

Income tax- 0- 0- 02.30100%100%

Net profit5.34.518%9.916.6-40%-40%

EBITDA8.76.143%15.219.9-24%-24%

Dep(3.4)(1.6)-5.3-3.3

G3E


(US$ million)20182017%%

Revenue- 0- 0- 0




SGA(1.6)(1.7)(6%)(4.1)(5.0)(18%)

DDA - 0- 0- 0- - -



LBT(10.8)(4.3)(>100%)-1710%-2150%21%

Income tax - 0- 0- 0- - -




G3E Asset






Total assets 996.91,009.2(1%)1,009.201,343.50-25%


Bonds104.095.98%95.988.88%



Total equity 651.6671.8(3%)671.86395%

GDG Asset

(US$ million)H1 2019YE 2018%

Property, plant and equipment134.3132.91%

Gas exploration and appraisal assets237.7236.60%

Total assets391.8389.51%

Trade and other payables20.419.26%

Deferred tax liabilities29.129.10%

Total liabilities49.548.32%

Total equity342.3- 0- 0341.20%



G3E - Highlights of Financial Performance

Source: Company

(US$ million) H1 2019 H1 2018 %

Revenue - - - Cost of sales - - - Gross profit - - - Other income - - - SGA (1.1) (1.6) (31%)DDA - - - Loss from operations (1.1) (1.6) (31%)Net finance costs (10.1) (9.2) 10%LBT (11.2) (10.8) 4%Income tax - - - Net (loss) from continuing operation (11.2) (10.8) 4%Net (loss)/profit from discontinued operation 4.2 4.5 (7%)Net loss for the year (7.0) (6.3) 11%

GDG


(US$ million)20182017%20172016


Cost of sales(3.5)(4.5)(22%)-8.8-8.9-1%-1%

Gross profit10.26.752%18.319.9-8%-8%

Margin74%60%24%68%69%-2%-2%

Other income0.20.20%0.21.7-88%-88%

SGA(1.7)(0.8)>100%-3.3-1.6106%>100%

DDA(3.4)(1.6)>100%-7.6-3.4124%>100%


Margin39%40%(1%)28%58%-30%-30%


PBT5.34.518%7.616.6-54%-54%

Income tax- 0- 0- 02.30100%100%

Net profit5.34.518%9.916.6-40%-40%

EBITDA8.76.143%15.219.9-24%-24%

Dep(3.4)(1.6)-5.3-3.3

G3E

G3E

(US$ million)H1 2019H1 2018%%

Revenue- 0- 0- 0




SGA(1.1)(1.6)(31%)(4.1)(5.0)(18%)

DDA - 0- 0- 0- - -


Net finance costs (10.1)(9.2)10%(13.0)(16.5)21%

LBT(11.2)(10.8)4%-1710%-2150%21%

Income tax - 0- 0-- - -

Net (loss) from continuing operation(11.2)(10.8)4%(17.1)(21.5)21%


Net loss for the year(7.0)(6.3)11%(24.6)(12.1)(>100%)

G3E Asset






Total assets 996.91,009.2(1%)1,009.201,343.50-25%


Bonds104.095.98%95.988.88%



Total equity 651.6671.8(3%)671.86395%

GDG Asset





Total assets369.4377.5(2%)1,343.5




Total equity321.9329.6(2%)639.0



G3E - Highlights of Financial Performance

Source: Company

(US$ million) H1 2019 YE 2018 %

Property, plant and equipment 0.2 0.2 0%

Gas exploration and appraisal assets 575.9 579.1 (1%)

Assets of disposal group classified as held-for-sale 391.8 389.5 1%

Total assets 978.3 980.7 (0%)

Convertible notes 61.5 58.7 5%

Bonds 117.2 110.1 6%

Liabilities of disposal group classified as held-for-sale 49.5 48.3 2%

Total liabilities 356.9 345.8 3%

Total equity 621.3 634.8 (2%)

GDG


(US$ million)20182017%20172016


Cost of sales(3.5)(4.5)(22%)-8.8-8.9-1%-1%

Gross profit10.26.752%18.319.9-8%-8%

Margin74%60%24%68%69%-2%-2%

Other income0.20.20%0.21.7-88%-88%

SGA(1.7)(0.8)>100%-3.3-1.6106%>100%

DDA(3.4)(1.6)>100%-7.6-3.4124%>100%


Margin39%40%(1%)28%58%-30%-30%


PBT5.34.518%7.616.6-54%-54%

Income tax- 0- 0- 02.30100%100%

Net profit5.34.518%9.916.6-40%-40%

EBITDA8.76.143%15.219.9-24%-24%

Dep(3.4)(1.6)-5.3-3.3

G3E


(US$ million)20182017%%

Revenue- 0- 0- 0




SGA(1.6)(1.7)(6%)(4.1)(5.0)(18%)

DDA - 0- 0- 0- - -



LBT(10.8)(4.3)(>100%)-1710%-2150%21%

Income tax - 0- 0- 0- - -




G3E Asset

G3E

(US$ million)H1 2019YE 2018%20172016%

Property, plant and equipment0.20.20%-272.6-100%


Assets of disposal group classified as held-for-sale391.8389.51%380.1-100%

Total assets 978.3980.7(0%)1,009.201,343.50-25%


Bonds117.2110.16%95.988.88%

Liabilities of disposal group classified as held-for-sale49.548.32%50.5-100%


Total equity 621.3634.8(2%)671.86395%

GDG Asset





Total assets369.4377.5(2%)1,343.5




Total equity321.9329.6(2%)639.0

-25-


Table of contents



-26-

H2 2019 Outlook



• Repay two bonds from debt and equity issuance in Green Dragon Gas • Conclude evolution to exploration and development business• Finalise Dividend in Specie for producing assets• First gas in Guizhou block• Expand into an additional geography

• Infrastructure focus to monetize invested capital• Implement GCZ ODP• Increase gas sales• Conclude infill drilling program in current developed area• Attain approval for GSS Zaoyuan ODP

Exploration – G3E

Production – GDG

Source: Company

-27-

Dividend in Specie



• All G3E shareholders as of 29 March 2019 will receive dividend.

• The Dividend in Specie represents a 100% of the commercial producing assets.

• G3E will retain all its exploration and development assets.

• G3E shareholders to benefit from the monetization of producing assets.

• Dividend to be conditional upon approval of a public listing of GDG which is being pursued in Hong Kong.

Source: Company

-28-


Table of contents



-29-

First License

First Gas

Gas production commences at GSS

Greka commences Chinese operations

First PSC signed on theGFC block

Acquisition of four additional

licenses

Commenced operations on the ground

Signing of four other licenses including Shizhuang South

Public Floating on AIM

The Company listed on the Alternative

Investment Market in London on August 17,

2006.

Technological Breakthrough

MWD (Measurement While Drilling) and LWD (Logging

While Drilling) facilitate LiFaBriC development

Signed an agreement with Conoco Philips

LiFaBriC

Lined Faulted Brittle Coal

Improved drainage factor

Greka Drilling Dividend

8th March demerger of Greka Drilling

Addition of 2 CNG stations in Pindingshan

Upgrade of Infrastructure Production Facilities to

support 28 new wells of gas production

Landmark Government Ruling

Chinese Government rules in favor of Green Dragon on validity of PSC

Greka Engineering and Technology Dividend

30th Sept demerger of Greka Engineering

Zhengzhou Greka Gas Co Ltd entered into a

20-year agreement with PetroChina Huabei

Oilfield

Binding Agreements with CNOOC and PetroChina

Landmark agreements lead to shareholder participation in 1,800 wells

FTSE 250 Foundation for Success

Strengthening cooperation with Chinese Partners

GCZ ODP Implementation

Continuous compression at GSS along with CNOOC infrastructure built

Guizhou first test gas sales

1997-1999

2000 -2002 2008 20092003 2006 2012 2013 2014 2015 2018

-29-

History and Corporate Milestones


Source: Company

-30-

Government Objectives

• Increase CBM consumption to 10% of energy mix by 2020• Increase investment in CBM development, adding 420 BCM by 2020 to national proved

reserves• Increase production to 24 BCM in 2020, an increase of 33% from 2015•Decrease colliery gas incidents by 15% by 2020

Benefits to G3 Exploration

•Blocks named priority CBM Blocks/“The Key Projects”• Increased investment certainty - support actions with special funds for CBM projects•Continued support in increased subsidy expected•Relaxed VAT rules on imported CBM equipments

Source: NEA-30-

Impact of 13th Five Year Plan on G3 Exploration


-31-

• Conventional gas prices have historically been tightly regulated by the NDRC, which set a base price for different onshore fields and pipelines based on types of end users supplied− In recent years, the NDRC has undertaken a number of reforms to

raise the legacy base price of natural gas in order to encourage its greater production and general adaptation

• Unconventional gas prices (including CBM) are unregulated2 and are driven by demand and supply trends in the respective regional markets with reference to prevailing natural gas prices− Each province sets prices for natural gas within its territory based on

the NDRC guidance− The retail CNG pricing follows the city-gate pricing levels set by the

Central Government

Supportive Pricing and Regulatory Environment

-31-

China City Gate Gas Prices1 ($/Mcf) China Gas Prices and Market Structure

10.6

8.1

9.810.1

8.89.3

0.0

2.0

4.0

6.0

8.0

10.0

12.0

14.0

2015

2016

2017

2018

2019

2020

2021

2022

2023

2024

Shanghai Xinjiang Inner Mongolia

Jilin Beijing Sichuan

Hubei GCZ GSS

The process of market and series of 2010-15 price reforms, combined with increasing demand for gas, have substantially increased average realised gas prices received by gas producers in China post 2015

GSS and GCZ Blocks Contract Pricing (2018)

RMB/m3 $/MCF

Area Contract Price SubsidyReceived

PriceContract

Price SubsidyReceived

PriceGSS 1.70 0.40 2.10 7.52 1.77 9.30GCZ 1.81 0.40 2.21 8.01 1.77 9.78

• GDG’s prices are under long-term GSAs with Greka Integrated Production Ltd. and CNPC for GSS and GCZ Blocks, respectively, and include subsidies issued by the MOFC3 and the Shanxi provincial government

Sources: 1. IHS Energy, China's Energy Statistical Yearbooks, updated August 2016. 2. Except when combined with conventional domestic or imported pipeline gas after pipeline transport.3. Ministry of Commerce, People’s Republic of China.

Inclusive of VAT

-32-

Strong China Gas Fundamentals

-32-

Gas Share of China’s Total Primary Energy Mix The Energy Strategy Targets

Growing energy demand and heightened interest for clean energy sources are driving the growth in China’s natural gas industry

Gas Demand Factors Gas Supply Factors

• Gas share of China’s 2018 total energy mix has grown consistently since 2005 (from 2.4% to 8.0%)1

UrbanisationGrowth in

manufacturing Industries

Coal-to-Gas switch

Gas-to-Power switch

Electricity for electric vehicles

Steam assisted gravity drainage

LNG & CNG powered vehicles

Small loads LNG market development

Gas market liberalisation

• The Energy Strategy will encourage the removal and/or reduction of non-market obstacles to the growth of Gas’ share in China’s energy mix, and consequently will further enhance demand for Gas to 2030

8%0% 15%0%

2018 2030

Gas share of the primary energy mix

• Lack of both domestic supplies and the infrastructure to move bulk supplies of gas cheaply into and within China.

• China experienced acute gas shortage in the winter of 2018 when demand for domestic and household gas led to supplies being withheld from industrial users

Conventional production Unconventional production (CBM, CMM, Coal-to-Gas)

Net pipeline imports LNG import

2000

2001

2002

2003

2004

2005

2006

2007

2008

2009

2010

2011

2012

2013

2014

2015

2016

2017

2018

Sources: 1. China’s National Bureau of Statistics.

2x

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Documents

Interim Results October 2019 - G3 Exploration/media/Files/G/Green-Dragon-Gas/...-5-Assets in Commercial Chinese CBM Basins. Blocks’ summary Geographic location. GSS •Greka Interest: