RNS21 Apr 2016 08:21
RNS Number : 8466V
Greka Drilling Limited
21 April 2016
21 April 2016
Greka Drilling Limited
("Greka Drilling" or the "Company")
Annual results for the year ended December 2015
Greka Drilling Limited (AIM: GDL), the largest independent and specialised unconventional oil & gas driller in Asia, is pleased to announce annual results for the year ended 31 December 2015.
HIGHLIGHTS
OPERATIONAL HIGHLIGHTS:
· There were 3 principal contracted counterparties: Green Dragon Gas Ltd and PetroChina Huabei in China, and Essar Oil Limited in India.
· 62 wells drilled in 2015, a 38% increase over the 45 wells drilled in 2014.
· A total of 76,690 metres drilled in 2015, a 31% increase over 2014 (58,520 metres).
FINANCIAL HIGHLIGHTS:
· Annual revenues in 2015 increased to US$29.9m (2014: US$24.4m).
· Loss before tax widened to US$7.5m (2014: loss of US$5.3m) principally due to foreign exchange loss due to US$ appreciation against RMB. Foreign exchange losses in 2015 were US$3.6m (2014: US$0.8m).
· Earnings before Interest, Tax, Depreciation and Amortisation ("EBITDA") in 2015 was US$2.4m (2014: US$1.9m).
· Gross margin of 20%, compared with 26% in the same period last year.
· Year-end cash and bank deposits of US$2.4m including restricted cash (2014: US$8.0m).
· Following the period end, a US$5 million debt facility was secured on 31 March 2016.
DRILLING HIGHLIGHTS:
· Drilling efficiency improved significantly: in December 2015 we drilled 2,277 metres per rig per month in China, compared with 1,890 metres per rig per month in December 2014.
· The average drilling time for LiFaBriC lateral wells from spud to completion was 32.3 days in 2015 compared with 37.0 days in 2014.
· The longest LiFaBriC section in 2015, surface to intersection, was 1,760m measured depth ("MD") (compared to 1,600m in 2014).
· The longest horizontal well in 2015, surface to target, was 1,928 metres MD for a third party client in China.
· We completed LiFaBriC wells intersecting into directional wells in China at a measured depth of 1,500 metres, which is technically more demanding than intersecting a vertical well.
· We successfully drilled an experimental LiFaBriC well into coal seam 15 in Qinshui Basin, thereby opening up a new resource access for our client Green Dragon Gas.
· The deepest directional well we drilled in 2015 had a 1,311 metres true vertical depth ("TVD") and a 1,429 metres MD.
· Strong HSE focus, no Lost Time Injuries occurred in 2015.
Randeep S. Grewal, Chairman & CEO of Greka Drilling, commented:
"In 2015 we accomplished a 23% increase in revenues despite the challenging environment faced by th
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