27 Jan 2015 07:01
27 January 2015
Greka Drilling Limited
("Greka Drilling" or the "Company")
Operations Update
Greka Drilling Limited (AIM: GDL), the largest independent and specialized unconventional oil & gas driller in Asia, is pleased to provide an operations update to 31 December 2014.
OPERATIONAL HIGHLIGHTS
- 45 wells drilled in 2014 (2013: 50 wells), of which:
o 38 wells drilled in China
o 7 directional wells drilled in India
o 18 wells drilled (40%) for Green Dragon Gas Ltd. ("Green Dragon Gas")
o 27 wells drilled (60%) for other clients
- 26 wells drilled in H2 2014, an 8% increase over the same period last year (H2 2013: 24 wells), of which:
o 19 drilled in China
o 7 directional wells drilled in India
- Total of 58,520m drilled in 2014, a 17% decrease over 2013 (2013: 70,439m)
o 49,630m drilled in China
o 8,890m drilled in India
- 28,470m drilled in China in H2 2014, a 12% decrease over 2013 (H2 2013: 32,570m)
- 13,442 man-hours of training were conducted in China H2 2014, and a total of 21,291 man-hours in 2014
- 6,764 man-hours of training conducted in India during H2 2014
- Zero lost time injury/incidents recorded in 2014
The pace and quality of operational improvements were tangible in India as the equipment and crews became acquainted with the formations and drilling programmes.
2015 OPERATIONS OUTLOOK
- China
o 30 LiFaBric wells for Green Dragon Gas
o Up to 10 rigs utilized
- India
o 93 wells for Essar Oil Ltd ("Essar")
o 5 rigs utilized
- New contracts expected within China and India
- Decision on expansion into new geography
The beginning of 2015 is expected to bring an increased volume of activity over the first, and in particular, the second quarter - when the majority of the newly awarded 30 LiFaBriC wells from Green Dragon Gas will commence.
Randeep Grewal, Chairman and Chief Executive of Greka Drilling, commented:
"We are delighted that this year has the fundamentals for a good start for Greka Drilling and I am pleased to report a strong pipeline for 2015. The Company has received mobilisation orders for the 30 LiFaBriC well programmes for Green Dragon Gas in China and the Essar contract for the 100 wells in India is well underway."
For further information on Greka Drilling, please refer to the Company's website at www.grekadrilling.com or contact:
James Henderson / Rollo Crichton-Stuart Investor Relations Bell Pottinger
| +44 20 7861 3800 |
Dr Azhic Basirov / David Jones / Ben Jeynes Nominated Adviser Smith & Williamson
| +44 20 7131 4000 |
Chris Hardie Broker Arden Partners
| +44 20 7614 5900 |
Mark Taylor Broker Charles Stanley Securities | +44 20 7149 6000 |