Greka Drilling Limited
("Greka Drilling" or the “Company”)
Greka Drilling Limited (AIM: GDL), the largest independent and specialised unconventional oil & gas driller in Asia, is pleased to announce annual results for the year ended 31 December 2016.
- There were three principal contracted counterparties: Green Dragon Gas Ltd and PetroChina Huabei in China, and Essar Oil Limited in India
- 33 wells drilled in 2016, of which 5 wells were drilled in China and 28 wells in India
- A total of 39,553 metres were drilled in 2016 (2015: 76,690 metres)
- Annual revenue of US$7.2m (2015: US$29.9m)
- Loss before tax widened to US$9.6m (2015: loss US$7.5m) due to lack of workload
- Year-end cash and bank deposits of US$2.1m (2015: US$2.4m)
- The average drilling time for LiFaBriC lateral wells in China from spud to completion was 27.5 days in 2016 compared with 32.3 days in 2015
- The average drilling time for Directional wells in India from spud to completion was 12.9 days in 2016 compared with 16.1 days in 2015
- Greka Drilling has developed LiFaBriC completion with a 3½” steel liner, for Green Dragon Gas’s LiFaBriC Optimization program
Randeep S. Grewal, Chairman & CEO of Greka Drilling, commented:
“As anticipated a very challenging 2016, where our levels of activity experienced a significant decline compared with previous years due to the continued problems of the oil & gas service industry. The resulting decline in revenue was mitigated by our aggressive cost reduction program. Survival of the fittest certainly applied within the industry.
Despite limited drilling opportunities during 2016 in both China and India, the Group was selected by leading CBM development operators in both countries. In China, PetroChina and Green Dragon Gas contracted our China team for horizontal and directional wells while in India, Essar re-contracted our India team for its vertical drilling campaign on a day-rate basis.
The winning of these contracts in both China and India in the face of aggressive competition underscores Greka Drilling’s technical superiority and the recognition of the Company’s excellence and experience in unconventional gas development. Having endured the toughest times the industry has experienced, we are excited about our prospects in 2017 and beyond. Greka Drilling continues to win contracts in both China and India from operators that are attempting to monetize the very favorable CBM specific policies implemented by both governments. In both cases, the governments are focused on domestic clean energy and CBM resources are ideally suited for such a solution.”
For further information on Greka Drilling, please refer to the Company’s website at www.grekadrilling.com or contact:
+44 (0)20 7016 9829
Dr Azhic Basirov / David Jones / Ben Jeynes
Nominated Adviser and Broker
Smith & Williamson
+44 (0)20 7131 4000