Greka Drilling has received a 'letter of award' for a three-year drilling contract by Oil & Natural Gas Corporation Limited for the Bokaro CBM asset in India.
Under the contract, the company will deploy one of its purpose-built efficient semi-automated GD75 rigs based in India.
Greka said ONGC planned to drill 73 wells over the next three years using this state-of-the-art rig which had a proven track record of drilling in similar geological conditions.
Greka said the project would entail the provision of drilling and mud services along with the provision of associated equipment and was estimated to generate total revenues of US$15m over the three year period.
It said the LOA was subject to contract and to the issue of a performance bond.
Chairman and chief executive Randeep S. Grewal said: "I am pleased to announce that Greka Drilling has been awarded an LOA for this three year contract by ONGC.
"Being chosen as a desired partner with one of the world's largest E&P companies is a momentous occasion for Greka.
"As a market leader with 20 years of experience in coal bed methane drilling we are looking forward to supporting ONGC's development plan for its Bokaro asset.
"Greka Drilling is also in advanced talks with other oil and gas operators to contract our rigs in India during 2017.
"This coincides with recently announced CBM gas pricing reform by the Indian government and we remain bullish about the prospect of increasing our provision of specialised drilling services within the niche CBM sector in India.
"The company has succeeded in executing a balanced business plan in two of the largest CBM markets - China and India.
"After the award of this contract, Greka Drilling is associated with state-owned companies in both China (CNPC) and India (ONGC) as well as with the largest domestic CBM developers - Green Dragon Gas and Essar respectively.
"This contract reaffirms our strategy of diversification both on a client base and geography and gives the company a well-balanced business plan for the long-term."
At 9:36am: (LON:GDL) Greka Drilling share price was +0.1p at 2.57p