OREANDA-NEWS. October 16, 2014. China-focused unconventional gas firm Green Dragon Gas (LON:GDG), which now has a market cap of over USD 1bn, is to apply for a main market listing on the London Stock Exchange.

"Green Dragon has been served well by AIM since its admission on 16 August 2006 and the board believes that a move to London's main market now will provide the company with a larger liquid market with an enhanced profile and an appropriate platform for future growth," said chairman and founder Randeep Grewal.

He said the move complemented the material growth the company had seen.

"This year has seen a material increase in the scale of Green Dragon's operation and reserves which has been accompanied by an increase in our market capitalisation which now stands at over USD 1 billion," he said.

Cancellation of trading on AIM is expected on October 27 - the same day of anticipated trading starting on the main market.

Earlier this month, the company revealed it had more than doubled first half revenues as new wells came on stream.

Production climbed to 4.1Bcf, up by more than 200% over the comparable period, and reflecting agreements signed by Green Dragon with PetroChina, CNPC, CNOOC and CUCBM, four of China’s largest energy groups, to develop its acreage.

Revenues for the six months to June were USD 15.6mln (USD 6.9mln). Gross profits rose by 55% to USD 5.4mln while underlying net losses declined to US\\$7.3mln from USD 8.3mln.

Green Dragon shares were unchanged at 440p.