Investor Relations

Interim Results

30 September 2013

Greka Drilling Limited

("Greka Drilling" or "the Company”)

Interim Results

Greka Drilling Limited (AIM: GDL), the largest independent and specialized unconventional gas driller in China, is pleased to announce its results for the half year ended 30 June 2013.

FINANCIAL HIGHLIGHTS

• Revenue of US$14.4m (H1 2012: US$28.3m)
• Loss of US$2.4m (H1 2012: profit of US$0.7m)

OPERATIONAL HIGHLIGHTS

• 36,347 meters drilled, compared to 57,997 meters drilled in the same period 2012; the experience gained in the area allowed the Company to drill LiFaBriC wells with fewer branches reducing meterage
• Vertical wells averaged 25 drilling days versus 37 days in the same period in 2012
• Horizontal wells averaged 87 drilling days (radius bend and lateral section)
• Directional wells averaged 20 days; deepest well 1,076m Measured Depth (“MD”)
• LiFaBriC wells averaged 61 days improving on previous Company guidance of 90 days. Longest and deepest LiFaBriC well drilled: 1,917m MD and 1,040m True Vertical Depth
• 9,286 man-hours of employee training
• Significant stand-by and down time due to customer transition

CUSTOMER OVERVIEW

• Green Dragon Gas, historically the largest client, curtailed its drilling program in the first half of the year until the favorable conclusion of its title issues. These have now been resolved and the Company has recommitted itself to reaching its production targets of 18bcf.

• CNPC Huabei Changzhi (CBM) has planned to drill 300 wells in its Anze Block, Shanxi Province. A total of 110 are targeted for this year. Of this program, the Company has completed two directional wells till date. In addition, an exploration well will be drilled by rig GD75-21 and a Horizontal well will be drilled by rig GD75-25. Following the results of these two wells, the Company expects to be awarded an additional 70 wells planned by CNPC Huabei Changzhi from their total program for this year.

• CNPC Huabei Jincheng (CBM) has contracted the Company to drill at its Jincheng Block, Shanxi Province in two locations. The Company successfully completed a LiFaBriC well earlier in the year which is currently on production and being evaluated. Presently, the Company is drilling a four directional well program using GD75-23, of which the second directional is currently being drilled.

• Sinopec Huadong CBM (BOFA) contracted the Company for one year program to drill 50 wells at Jixian, Shanxi Province.  Sinopec Huadong CBM has a 3,000 well program with 600 wells in total planned for this year. Rig GD75-22, supported by Rig GS685-2, has completed three wells till date and the fourth is being currently drilled. During these test wells, the Company’s performance continued to improve. The TVD for the third well was 1,214 m and the MD was 1,292 m. This was achieved in 10 days from spud to completion and compares with 19 days for the first, with a TVD of 1,225 m and MD 1,341 m. The Company expects to continue the drilling program and, subject to agreement with the client on drilling locations, drill the balance of the one year program as planned.

• Sinopec Huabei (Petroking) has planned for a 50 well program during the current exploration phase for unconventional oil within the Xunyi Block, Shaanxi. The Company is under contract to drill 100 wells subject to successful drilling of the first 20 drilled across the Sinopec Huabei acreage inclusive of the Xunyi Block.  The Company’s GD75-12 and GD75-14 are currently drilling under this program. Rig GD75-14 has completed one directional well and is currently drilling the second directional well of a seven well program.  Additionally, GD75-12 spud the first Horizontal Well on 1^st August which is currently being drilled in co-operation with Sinopec engineers.

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

“Our objective of diversifying the client base was well executed with current drilling activities progressing under five different customer contracts.

 Notwithstanding the positive transition to a diverse client base, our historically predominant client, Green Dragon Gas, curtailed its drilling program. This negatively impacted our first half results but we are pleased that they have re-engaged in their programme, using Greka Drilling as their drilling partner. Whilst the success achieved in diversifying away from a single client has been a success, the time taken to fully capitalize on the increased customer base did not offset the effects of losses from the drilling campaign from the first customer. We expect to continue into 2014 with this diversified client base and a strong backlog.”

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