India Drilling Update
08 June 2016
Greka Drilling Limited (AIM: GDL), the largest independent and specialised unconventional oil & gas driller in Asia, is pleased to provide an update on the contract to provide drilling services to Essar Oil Limited ("Essar") in the Raniganj block, West Bengal, further to the rig mobilisation announced on 20 April 2016.
Greka Drilling has now successfully drilled two directional wells for Essar under this contract. The first well was spudded on 8 May and the drilling of a second well was completed by the same GD75 rig on 5 June, with a total of 2,439 meters drilled over the course of 28 days. The Company is prepared to drill a third well under the contract, which is expected to spud shortly. Under the Essar contract, which is for a period of one year, Greka Drilling is remunerated on a day-rate basis for drilling vertical and directional wells.
A second GD75 rig is in the process of being prepared for mobilisation under the same contract to help meet Essar's drilling needs in the Raniganj block, where Essar is the largest producer of coal bed methane ("CBM") in India.
Randeep S. Grewal, Chairman & CEO of Greka Drilling, commented:
"We are delighted that the drilling campaign for Essar has started so well and we look forward to the mobilisation of more rigs in West Bengal over the course of the year. There are a number of CBM resource holders in India who are now planning extended drilling campaigns and Greka Drilling will continue to be at the forefront of these developments."
For further information on Greka Drilling, please refer to the Company's website at www.grekadrilling.com or contact:
+44 (0)20 7016 9829
James Henderson / Rollo Crichton-Stuart
+44 (0)20 3772 2500
Dr Azhic Basirov / David Jones / Ben Jeynes
Nominated Adviser and Broker
Smith & Williamson
+44 (0)20 7131 4000