Investor Relations

Annual results for the year ended December 2011 Revenue increases 80%

10 April 2012

FINANCIAL HIGHLIGHTS

• Revenue of US$43.8m, an 80% increase over same period last year of US$24.3m
• Net profit of US$2.8m, compared with US$2.0m last year, 39% increase year-on-year
• EPS US$0.006, compared with US$0.005in same period last year
• Cash and cash equivalents of US$6.6m
• Unused US$12.5m revolving working capital facility

 
CORPORATE HIGHLIGHTS

• Personnel grew from 216to 520, an increase of 141% year-on-year
• Newly constructed Site Camp of 9,760square meters with capacity for 1,000personnel
• Fleet increased from 7rigs to 16 rigsover the period, an increase of 129% year-on-year
• Newly established directional drilling and maintenance and logistics divisions
• Admitted to the London Stock Exchange AIM market in March 2011
• Successful 100% demerger from Green Dragon Gas

 
OPERATIONAL HIGHLIGHTS

• 88,224metres drilled, compared to 59,807 metresdrilled in 2010, a 48% increase
• Vertical wells averaging 37drilling days
• Horizontal wells averaging 51 drilling days

 
Randeep Grewal, Chairman and Chief Executive of Greka Drilling, commented:
“It has been an exciting and rewarding journey for shareholders and employees alike. The rate of our expansion has been at times challenging following the move from being the in-house driller of Green Dragon Gas to being the largest independent and specialised unconventional gas driller in China. The pace of our growth is underpinned by a methodology of drilling within Chinese coal seams and is driven by our goal of matching the pent up demand that exists for this expertise. Our pioneering ability to ‘crack the code’ of one of the most challenging geology’s globally was built through knowledge, experience and tenure. No other Company in China has advanced the aspirations of the Country to deliver its unconventional gas resource as we have. Today we can truly claim the mantle of a pioneer. Indeed, China is beginning to acknowledge the problems we have faced, with the heavily faulted coal seams being frequently referred to in the public domain as an impediment to the commercialisation of unconventional gas. The 12^thfive year plan lays out specific targets for unconventional gas production in China. With our methodology deploying at a fast pace at Green Dragon Gas’ Shizhuang South block, the scene is set for deployment across other locations throughout China, and for multiple customers. We believe that third party contracts are imminent. The Company is scalable, skilled and staffed. We expect to be able to fund the future growth of the Company in part with debt from Chinese banks as we continue to take deliveries of our new Greka Drillmec rigs.”
 
For further information on Greka Drilling, please refer to the website at www.grekadrilling.com or contact: