Greka Drilling Limited Operations Update (4879U)
January 18 2017 - 7:02AM
UK Regulatory
TIDMGDL
RNS Number : 4879U
Greka Drilling Limited
18 January 2017
18 January 2017
OPERATIONS UPDATE
Greka Drilling Limited (AIM: GDL), the largest independent and
specialised unconventional oil and gas driller in Asia, is pleased
to provide an operations update to 31 December 2016.
Operational Highlights
l 33 wells were drilled in 2016 (2015: 62 wells), of which:
(2) 85% third party and in India
(2) 5 wells drilled in China (2015: 53 wells)
(2) 28 wells drilled in India (2015: 9 wells)
(2) 5 wells drilled for Green Dragon Gas Ltd. ("Green Dragon
Gas") (2015: 51 wells)
(2) 28 wells drilled for Essar Oil Limited ("Essar") (2015: 11
wells for other clients: Essar - 9 wells; PetroChina - 2
wells).
l A total of 39,553 metres were drilled in 2016 (2015: 76,690
metres):
(2) 6,072 metres were drilled in China
(2) 33,481 metres were drilled in India
(2) 13.2% of the metres involved the use of in house
measurement-while-drilling ("MWD") directional tools (i.e. were
lateral or directional wells).
l 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.
l 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.
l Greka Drilling continues to emphasize training, with 4,584
man-hours of training conducted in 2016 for staff in India and
China.
l Strong HSE focus. No Lost Time Injuries occurred in 2016.
2017 OUTLOOK
For India:
l Continue work load and contract with Essar
l Attain contract from state controlled entities - ONGC and Coal
India
l Acquire new contracts with other oil and gas operators in
central India
For China:
l Expand capability into the workover market
l Expand capability into the Geothermal market
l Secure workload from key client CNPC, PetroChina and Green
Dragon Gas.
Randeep S. Grewal, Chairman and Chief Executive of Greka
Drilling, commented:
"As predicted, 2016 was a challenging year while the oil and gas
operators realigned their portfolios to the new commodity price
environment. During this period we continued to take steps to
reduce costs, improve our drilling efficiency and diversify our
services and customer base.
In India, we won a new contract from Essar Oil to provide
drilling for vertical and directional wells on a day-rate basis.
Greka Drilling completed 28 directional wells with 33,481 metres
under this contract in 2016, and continues to drill to meet Essar's
drilling requirements under the current contract until mid-February
2017. In addition to Essar, GDL is also in advanced talks with
other oil and gas operators to mobilise other rigs in the central
part of India during 2017.
In China, we completed our limited contract for key client Green
Dragon Gas by year end and expect to attain new contracts from this
client in 2017. In November 2016, we won a new contract from
PetroChina to provide drilling for up to five horizontal wells. The
rig has been mobilised for two wells and is rigged up on site with
the spudding of the first well expected following Chinese New Year,
in mid-February.
We are in the process of expanding our capability and
diversifying our operations into the geothermal and work-over
market in 2017. Our equipment provides us an ideal foundation to
expand our capacity into these stable markets regardless of
commodity prices. We expect these two markets will provide the
business stability while be complementary to our niche in the CBM
sector within China and India.
We remain confident about the market and the Company's longer
term prospects, both in China, India and in other markets."
For further information on Greka Drilling, please refer to the
Company's website at www.grekadrilling.com or contact:
Sarah Lowther
Media Relations +44 (0)20 7016 9829
Greka Drilling
Dr Azhic Basirov / David Jones / Ben Jeynes
Nominated Adviser and Broker +44 (0)20 7131 4000
Smith & Williamson
This information is provided by RNS
The company news service from the London Stock Exchange
END
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