Greka Drilling Regulatory News (GDL)

12 September 2012

Greka Drilling Limited

("Greka Drilling" or "the Company")

Greka Drilling enhances LiFaBriC

Greka Drilling Limited (AIM: GDL), the largest independent and specialised unconventional gas driller in China, is pleased to announce that it has completed the purchase and delivery of four Rotating Magnet Ranging Systems (RMRS). This is a further milestone in the Company's strategy to optimise its LiFaBriC methodology.

The delivery of the RMRS equipment will enable a time saving of four to five days of drilling per LiFaBriC well. The RMRS technology enables the LiFaBriC lateral section to intersect a separate offset vertical production well on the first time while drilling approach, as opposed to the previous Magnetic Guidance Technology (MGT) traditionally used for this type of well completion. Since commissioning this equipment the Company has utilized this technology enhancement to successfully intersect seven wells on a first time approach.

In addition to benefits such as drilling time and coal seam stability of first time intersections, this technology also enables the Company to drill vertical wells without 'under-reaming' in order to create a larger target cavity to ease the intersect. Under-reaming in the vertical wells was often suspected of being detrimental to production in structurally unstable coals, and the enhanced accuracy of the RMRS equipment allows for the intersection of a smaller cased well increasing the wells long term reliability.

RMRS technology is traditionally used in the conventional Oil & Gas sector and creates a time-varying magnetic field to detect sensors placed in a separate well of up to 100m (328ft) away, and has been adapted to suit the advancement of the LiFaBriC method. This acquisition of four kits by Greka Drilling places the Company as the largest single holder of this equipment within China.

Randeep S Grewal, Chairman and CEO of Greka Drilling commented;

"Another milestone: The Company has achieved a further advancement in its LiFaBriC drilling methodology. Our guiding principles dictate that GDL is the provider of premium services to the unconventional energy sector. We will provide our clients with the very best technology available on the market today and continuously enhance it. Our pioneering spirit is all the more powerful when our skilled workforce engages with leading edge technology. We intend to make LiFaBriC the chosen completion method of choice for the unconventional sector in China and globally, where applicable".

For further information on Greka Drilling, please refer to the website at www.grekadrilling.com or contact: