21 December 2017
Greka Drilling Limited
("Greka Drilling" or the “Company")
Greka Drilling Limited (AIM: GDL), the largest independent and specialized unconventional gas driller in Asia, announces an update in relation to drilling contracts in China and India.
The Company has been awarded two new contracts with PetroChina Huabei Oilfield Limited (“PetroChina”, a subsidiary of CNPC) for their ANZE block in China. Each of the new contracts is for 18 months, with a scope of 10 directional wells, each to be drilled on multi-well pads. The estimated aggregate value of the two contracts is RMB13.6m (approximately US$2.1m).
The contract for PetroChina’s ANZE block announced in August 2017 has been completed with 10 wells being drilled with an average completion time from spud to release of 9.73 days and an average depth of 1,350m.
The Company is in discussions with Oil and Natural Gas Corporation Limited which may lead to material modifications including termination of the Bokaro drilling contract in India announced by the Company on 16 November 2017. A further announcement in relation to this contract will be made in due course.
Randeep S. Grewal, Chairman of Greka Drilling, commented:
“The awarding of these new contracts by PetroChina has been the result of a strong drilling performance by the Company’s advanced rigs and experienced crews. We expect more contracts to be awarded in the near future as China operators continue to ramp up their drilling programs to meet the country’s increasing demand for clean energy through CBM gas.We are seeking to clarify the situation in relation to the ONGC contract and will provide an update when appropriate.”
For more information on Greka Drilling, please visit the Company’s website at www.grekadrilling.com or contact:
Smith & Williamson
Nominated Adviser and Broker
Azhic Basirov / David Jones / Ben Jeynes
+44 (0) 20 7131 4000
This announcement is inside information for the purposes of Article 7 of Regulation 596/2014.