24 Jul 2015 07:00
24 July 2015
Greka Drilling Limited
("Greka Drilling" or the "Company")
Operations Update
Greka Drilling Limited (AIM: GDL), the largest independent and specialised unconventional oil & gas driller in Asia, is pleased to provide an operations update for H1 2015.
OPERATIONAL HIGHLIGHTS
- 28 wells drilled during H1 2015 (H1 2014: 19 wells), of which:
• 19 wells drilled in China
o 2 Laterals
o 17 Verticals and directionals
• 9 wells drilled in India
• 18 wells drilled (64%) for Green Dragon Gas Ltd. ("Green Dragon Gas")
• 10 wells drilled (36%) for other clients
- Total of 26,367 metres drilled in H1 2015, a 25% increase over H1 2014 (21,159 metres)
• 16,447 metres drilled in China
• 9,920 metres drilled in India
- 20,721 man-hours of training were conducted for Company staff in China and India during H1 2015, a 137% increase over H1 2014 (8,752 man-hours)
- Vertical wells drilled in China averaged 11.2 days compared to 9.3 days in H1 2014
- Directional wells drilled in China averaged 11.8 days compared to 11.5 days in H1 2014
Randeep S. Grewal, Chairman and Chief Executive of Greka Drilling, commented:
"We are pleased with the gradual increase in our mobilisation and thus drilling operations so far this year. While the Company has significant contracts in place within China and India, the activation of these contracts that commit us to initiate the drilling is, as previously stated, subject to the discretion of the contracted party. As witnessed globally, the E&P sector has seen a material reduction in drilling campaigns and all service sector companies have felt the impact of such reductions. Notwithstanding the macro industry trend, the mobilised drilling campaigns of our key client (Green Dragon Gas) provide us confidence in a robust 2015 which we continue to expect to be an improvement over 2014. In China, the Company has begun drilling a 30 LiFaBriC well drilling campaign for Green Dragon Gas and is working with the client to design their recompletion programme for up to an additional 22 wells to be completed this year.
"In India, Essar has now suspended its drilling campaign but still intends to drill a single LiFaBriC test well to measure the results from the application of this technology to their CBM reservoirs and we hope this will complete in H2 this year. Whilst Essar's current suspension of its drilling campaign will reduce the initially forecasted revenue in the current year from India by the value of the remaining contract value, we remain confident about the Company's longer term prospects in India".
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 |
James Felix Broker Arden Partners
| +44 20 7614 5900 |
Mark Taylor Broker Charles Stanley Securities | +44 20 7149 6000 |