9th Apr 2014 07:39
LONDON (Alliance News) - Greka Drilling Ltd saw its share rise strongly Wednesday after it signed a new drilling contract with Guangdong Bureau of Coal Geology, it first contract with the company and taking it into a new region of China.
The oil and gas well drilling company operating in China said the deal is for a 30 well programme at the Hunchun project in Jilin province. It didn't give any financial details.
Greka said it has assigned three light capacity rigs to the project and they are expected to be drilling the wells to depths of between 700 metres and 800 metres over 105 days.
However, Guangdong Bureau of Coal Geology will be doing several of the jobs usually done by the drilling contractor, like casing, logging and cementing.
"This is our first contracted work for GBCG, and also sees Greka Drilling operating in a new region of China," Greka Drilling Chairman and Chief Executive Randeep Grewal said in a statement. "This new region of activity for Greka Drilling gives us a possibility to diversify and spread our activity to more regions servicing more clients, building a varied portfolio of services and clients."
Greka Drilling shares were up 5.3% at 18.55 pence early Wednesday, one of the biggest gains on AIM.
By Steve McGrath; [email protected]; @SteveMcGrath1
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