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Investor Relations

Annual results for the year ended December 2012 Revenue increases 39%, meters drilled by 67%

Annual results for the year ended December 2012
Revenue increases 39%, meters drilled by 67%

12 March 2013

Greka Drilling Limited (AIM: GDL), the largest independent and specialized unconventional oil & gas driller in China, is pleased to announce annual results for the year ended 31 December 2012.

FINANCIAL HIGHLIGHTS

  • Revenue of US$60.9m, a 39% increase over same period last year of US$43.8m.
  • Total Assets increased by US$25.7m to US$114.1m an increase of 29% year on year.
  • EPS US$0.005, compared with US$0.007 in same period last year.
  • Cash and bank deposits of US$3.1m.
  • Paid off US$12.5m working capital facility in full from affiliate Green Dragon Gas Limited, further demonstrating the Company’s increasing operational independence.
  • Increased China based working capital facility to US$12.0m by year end.

CORPORATE HIGHLIGHTS

  • Headcount grew to 665 with a total of 106,581 hours of training and the ability to operate crews 24/7, 365 days of the year. Fleet increased from 16 rigs to 32 rigs over the period, an increase of 100% year-on-year; average number of rigs in 2012 was 28 versus 14 in 2011.
  • 9 directional drillers compared with 51 a year earlier one of the largest team of directional drillers in China.

OPERATIONAL HIGHLIGHTS

  • 3 contracted counterparties: Green Dragon Gas, CNPC Huabei and Petroking.
  • 90 wells drilled in 2012 compared with 50 wells drilled in 2011, an increase of 80% year-on-year.
  • 147,126 metres drilled, compared to 88,224 metres drilled in 2011, a 67% increase
  • Vertical wells averaging 37 drilling days.
  • Horizontal wells averaging 51 drilling days.
  • Exploration drilling (LiFaBriC) wells at 88 days improving on previous company guidance of 90 days.

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

“I am delighted to report that we have continued to grow the business on time and within plan. For the full year we have increased revenues, evaluated many unconventional basins in China, India and South East Asia. These third party evaluations conducted by our in house geology and engineering personnel give us a very high degree of confidence that the LiFaBriC drilling methodology has a significant and wider footprint in Asia as whole, in addition to multiple opportunities within China itself.  We are the one stop shop of choice for unconventional drilling completions in Asia.”

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

Stephen Hill, VP Corporate Communications

Greka Drilling Limited

+852 3710 0108

Dr Azhic Basirov / David Jones

Nomad & Broker

Smith & Williamson

+44 20 7131 4000

Jeffrey Auld / John Dwyer / Steve Baldwin

Broker

Macquarie Capital (Europe) Limited

+44 20 3037 2000

James Henderson / Nick Lambert /

Rollo Crichton-Stuart

Investor relations

Pelham Bell Pottinger

+44 20 7861 3232