2nd Sep 2014 07:49
LONDON (Alliance News) - Greka Drilling Ltd saw its shares rise sharply Tuesday after it said two of the five rigs mobilised to India in August to drill wells for Essar Oil Ltd are now fully erected and will begin drilling shortly in the Raniganj East Block in Durgapur, West Bengal.
The company agreed a USD65 million contract to drill 100 wells for Essar Oil Ltd earlier in the year.
Five GD75 rigs that were mobilised from Greka Drilling's existing fleet in China arrived in India mid-August and are being prepared for drilling at designated well sites. Two of the rigs are now fully erected and will begin drilling shortly.
The first wells will be started in mid-September, with the drilling campaign expected to last about 12 months, Greka said.
The contract "confirms our intention to diversify the company's client base, geographical strata and drilling operations and gives us an excellent foundation to further expand our services into the highly prospective and scalable Indian unconventional gas market," Chairman Randeep Grewal said in a statement.
Greka Drilling's shares were up 13.17% to 11.77 pence per share early Tuesday, one of the biggest gains on the AIM All-Share index.
By Joshua Warner; [email protected]; @JoshAlliance
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