Investor Relations

Interim Results 2014

24 September 2014

("Greka Drilling" or the “Company”)

 Interim Results 2014

Greka Drilling Limited (AIM: GDL), the largest independent and specialized unconventional gas driller in China, is pleased to announce its results for the six months ended 30 June 2014.

FINANCIAL HIGHLIGHTS

·         Revenue of US$8.9 million (H1 2013: US$14.4 million)

·         Gross margin: 27% (H1 2013: 5%)

·         US$18.6 million of cash on hand as at 30 June 2014 (US$15.0 million restricted)

OPERATIONAL HIGHLIGHTS

·         19 wells drilled in first half of 2014 versus 26 in the same period in 2013, a 27% reduction

·         21,159m drilled ,versus 36,347m in the same period in 2013, a 42% reduction

·         Vertical wells averaged 9.3 days from spud to completion, compared to 25 days in the same period in 2013, a 63% improvement

·         Directional wells averaged 11.5 days from spud to completion, compared to 20 days in the same period in 2013, a 43% improvement

·         LiFaBriC wells averaged 43.9 days from spud to completion, compared to 61 days in the same period in 2013, a 28% improvement

·         Rig GD75-24 established two records for Greka Drilling whilst drilling for Sinopec (BOFA), drilling two 8 ½” sections to depths of 506m and 529m respectively, each in 24 hours

·         Fastest Vertical well was drilled to a total depth (“TD”) of 620m in 5.2 days (spud to completion)

·         Fastest Directional well was drilled to TD of 1,494m in 7.8 days (spud to completion)

·         Fastest LiFaBriC well was drilled to TD of 1,230m (total metres drilled - 1,622m) in 40.2 days (spud to completion)

CUSTOMER OVERVIEW

·         Six counterparties: Green Dragon Gas, CNPC Huabei, CNPC Jincheng, Sinopec (BOFA), Essar Oil and Guangdong Bureau of Coal Geology

·         Mobilization began with 5 GD75 rigs and related tools and equipment have arrived in India to execute the Essar Oil contract

Randeep S. Grewal, Chairman and Chief Executive of Greka Drilling, commented:

“Whilst mobilization orders have been slower than anticipated, the Company is pleased that we have seen forward momentum on two of our main contracts. The US$65 million  contract for Essar Oil in India is now underway and the first two rigs are ready to  spud the first wells shortly. Additionally,  the first two LiFaBriC wells for Green Dragon Gas were completed and we have recently been mobilized to finish the balance eight of the ten LiFaBriC well program  in China. As such, we look forward to these revenues becoming visible within the next reporting period.

Greka Drilling maintains a healthy backlog of business on both contracts that have been recently mobilized and those that still remain to be given mobilsation orders. We are also pleased to have increased our counter parties’ year on year and continue to remain in dialogue with numerous potential business opportunities.

Importantly, we have further demonstrated our drilling efficiency with a 620m vertical well being drilled in 5.2 days and were proud to break our own records by drilling two 8 ½” sections of 506m and 529m respectively, each in 24 hours. Such operational improvements allow us to operate at a lower cost and which is in turn passed onto our clients.”

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