Member Info for Jamesiecakes

I wonder how much (if any) work GDL will get as a result of GDG GCZ announcement today, would be nice if it were the full 147 producers quoted in the RNS and hence a lion share of the approximately $50mm. Fingers crossed James

Yes I agree, reading between the lines of the below quote from the RNS; "Greka Drilling is also in advanced talks with other oil and gas operators in India to mobilize additional rigs in the country during 2017" It sounds to me as if there very confident of signing Essar otherwise they would be able to utilise the rigs which have been used on the essa contract. I doubt they would have mentioned mobilzing additional rigs if they thought they could use what was already in country.

http://www.proactiveinvestors.co.uk/companies/stocktube/7003/completion-of-50-wells-a-momentous-occasion-says-greka-drilling-s-ceo-randeep-grewal-7003.html

Hey Debs I agree with your thoughts, the RNS was as expected with no thrills or spills (the latter being a relief the former a small disappointment). Going forward I expect to see a contract from GDG for workovers, as looking at GDG presentations there is lots of talk about connecting drilled wells to infrastructure and performing work overs. I have no idea about the geothermal market to be honest, not sure if others do? It was good to see a pretty much completed contract in India, and will be interesting to see if Essar extend the contract, Fingers crossed. So all in all potential but as always risk! Cheers James

wouldnt it be nice to get a new contract before the ops update, got a feeling that 2017 is going to be a (to quote Mr Grewal) "transformational year". All the best everyone for 2017 Ps Ops update is the 18th according to the website

Looks like the website has been updated a little and some new dates for the diary added; 18 Jan - year end ops update 02 Mar - year end results Cheers James

based on the historic trends the interim report is due any day, fingers crossed we get a bit of an update on drilling progress in India (and news on potential new contracts), along with more detailed information on the re-commencement of drilling in China (green dragon, Other or both). Fingers crossed that some positive news starts to trickle through Have a good weekend all James

http://www.bbc.co.uk/news/world-asia-china-37265541 Could help over the next few years

Let's hope something positive is coming, think we all deserve a little good news

Just another 300% and I'll be in profit!

Let's hope the broker doesn't know more than us, I have around $32MM revenue and a small loss pencilled in! Would seem strange that despite a big jump in meters drilled revenue would only marginally increase while profit before tax would increase massively YOY. But hey when it comes to Greka I've been consistently wrong!!! Thanks for posting James

Hello Crash Not read all the posts today as I'm a little busy, but just glanced through, you are stating that only profits can reduce debt? You need to remember that there are none cash items included in profit e.g. Depreciation and amortisation. So EBITDA/operating cash flow would be a better way of looking at the companies ability to pay down debt. Apologies if this point has been covered elsewhere Cheers James

Crash In response: So you are assuming that the debt is rising, based on the level of drilling in 2015....I am not disputing that the liabilities as at June 2015 were $41m, I am merely stating you should also consider the current asset in your comments otherwise they seem somewhat unbalanced. I do agree that the current ratio is too low and therefore short term liquidity could be an issue, however I expect to see a pick up in receivables (which will obviously convert to cash) based on H2 numbers and therefore expect to see this ratio improve. I guess time will tell who is right. In terms of the value of the NBV, I don't really understand your concern about there valuation as the auditors would have carried out a review including the depreciation methodolgy in order to give their unqualified opinion of the accounts e.g. They are true and fair. the 1500 wells will obviously increase GDG free cashflow, this free cashflow will then be used to develop the remainder of GDG acerage e.g. Drilling wells! now as GDG drilling service provider of course GDL will benefit, why would randeep not use GDL? I agree if history is anything to go by then chances are I will loose my money (I can afford to loose what I have invested) but looking forward with the above in mind I believe the future for Greka is bright , and this is only based on GDG wells with other contracts being the cherry on top. Cheers James

Hello Crash I've read the majority of your post over the last few weeks, and have a few comments/questions for you; You seem to have a focus on debt/liquidity, which as you state was $41mm (incl payables etc) at the 31/06/2015 per the interims, however you make no mention of the current assets which around around $18mm at the same point in time (including receivables etc) I agree that this is to low a current ratio but omitting CA from a comment on liquidity doesn't make much sense....in addition you say you know debt has risen, how do you know this? You seem to think that Randy makes up the depreciation methodology for Greka, but a units of production calculation is not uncommonly used in te O&G sector for the management ledger and will better match cost with revenue. The asset value will have been audited so not sure why you don't believe the NBV? Or are you saying you do not believe this is the value the assets would receive if the s£&t hit the fan? I also seem to recall you state that the 1500 wells drilled on GDG acerage means that they will not require Greka services going forward, or something to this effect. My understanding is that GDG acerage has only been approximately 10% developed (per Randeeps interview on stock tube last week). Although it would of obviously been beneficial for Greka to have drilled all these wells surely the cash flow they bring to GDG will be of benefit to Greka over the next years, since they are GDG driller? Why would Randeep give money to another company to drill unless Grekas tech is so bad he would gain from a external service provider? Appreciate you likely won't agree with what I say, and that's fine (and why money can be made/lost from the market), but it would be appreciated if you back up your "facts" with a little substance. Cheers James

If they were not done, wouldn't this be a known reason for the price drop and kinda go against yesterday's RNS?

Anyone else notice the 2015 ops update date has been altered from 26/01 to 05/02 on the website, must need the extra days to count all those extra meters drilled......

Per the website year end ops update is scheduled for 26/01/16 Cheers James

Hi IOMRon Agreed they should have given more information in the RNS to make this clear, however companies seem to enjoying leaving as much ambiguity in their releases as possible!!! I accept the explanation, however if these are true fixed costs I'm interested to see what these can be reduced to in H2 and suspect that China might "cover" up India to a degree. Hopefully they will provide cost of sale information at a geographic level like in the 2014 full years which should make things a bit clearer. I am convinced the 30 well GDG contract will be finished before YE, and believe this will act as a catalyst for share price appreciation when the full year results are released people can see a healthy profit, and hopefully a more healthy cash balance (I can't believe GDG present much of a receivable risk in truth so this should be fine). As always lots to look forward to (if you believe) but also lots of uncertainty. Cheers James

Hi Vigneron I got a similar response myself. looks to me like India rubbish performance in H2 2014 was offset by China, which happened to maintain Operating margin at around 26%, however in H1 2015 China activity wasn't sufficient to offset India numbers hence the negative margin. I'm interested to see to what level they can reduce costs in India to, and excited about what Margin they will generate on the 30 Lifabrics, I suspect it might be as high as 60% (China margin was around 50% in H2 assuming I got my calculation correct) Assuming there are no further nasty surprises I'm actually getting a little optimistic that things might be starting to turn for the better (but I am a born optimist!!!) Cheers James

Hi Jimmy My understanding is that Inventory etc would be taken to balance sheet and then released to PnL as the item is consumed so I do not think this explains it. I am sure there is a simple explantion behind this increase in cost, however I think they brushed over this a bit in the accounts and it should have been dealt with head on to avoid confusion. Cheers James