Green Dragon To Pay $40 Mln As Final Settlement To ConocoPhillips

(RTTNews) - Green Dragon Gas Ltd. (GDG.L), a producer of CBM gas in China, Friday said it will pay $40 million as a final settlement to energy giant ConocoPhillips (COP), following which the latter would renounce all claims and awards to them within the various proceedings in multiple jurisdictions. The payment will be made using Green Dragon's existing cash resources and its appeal hearing scheduled for November has been withdrawn, bringing the matter to a closure. Earlier in August 2009, Green Dragon had received $42.6 million from ConocoPhillips under a farm-out agreement. The funds were used for further reserve development and drilling of gas production wells on the Shizhuang South block, and also to fund exploration activities within the Shizhuang North and Qinyuan blocks.