27th Jan 2015 09:30
LONDON (Alliance News) - Greka Drilling Ltd Tuesday said it drilled a total of 45 wells in 2014, 10% fewer than the year before, but said that it has a strong pipeline for 2015, which is expected to bring an increased volume of activity over the first, and in particular, second quarter.
The company, an oil and gas driller operating in Asia, was awarded a contract by Green Dragon Gas Ltd earlier this year, worth about USD45 million, to drill 30 wells as part of Green Dragon's plans to drill 150 wells at the Greka Shizhuang South production block in the Shanxi Province of China.
In a statement Tuesday, Greka Drilling said that out of the 45 wells drilled in 2014, 38 wells drilled were in China, and 7 were directional wells in India. It said 40% of the wells were drilled for Green Dragon Gas, and the other 60% for other clients. It said a total of 58,520 metres were drilled during the year, 17% less than in 2013.
"The company has received mobilisation orders for the 30 LiFaBriC well programmes for Green Dragon Gas in China and the Essar contract for the 100 wells in India is well underway," said Chairman and Chief Executive Randeep Grewal in a statement, referring to Essar Oil, part of the formerly FTSE 250-listed Essar Energy PLC, which was taken private in June.
The company also said it is expecting new contracts within China and India.
Greka Drilling shares were trading 0.3% lower at 9.00 pence Tuesday morning. Green Dragon shares were trading 2.3% lower at 401.10 pence.
By Rowena Harris-Doughty; [email protected]; @rharrisdoughty
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