Source - SMW
Greka Drilling, reported a significant increase in drilling activity during the latter half of 2017 in China, and said it expects to secure more drilling mandates and a greater drilling fleet utilization in 2018.
 
Greka's operational results for 2017 showed 48 wells were drilled, compared to 33 in the previous year. This was driven mainly by increased activity in China, where 41 wells drilled compared to just five wells in the previous year. 

While in India just seven wells were drilled for Essar Oil compared to 28 wells in 2016. The gas driller also reported that it drilled 13 wells for G3 Exploration, an increase of five wells in 2016. 

Greka said a total of 64,192 metres were drilled in 2017 -  56,531 metres were drilled in China, while 7,661 metres were drilled in India - compared to 39,553 metres in 2016.

The company said 81% of the metres in China involved the use of the company's in house MWD directional tools. 

In its 2018 outlook, Greaka said it expects to complete the 35 remaining wells under existing contracts and maintain client relationships with CNPC, G3E and Petrochina for additional mandates.

The company plans to increase drilling fleet utilization from 7 to 10 rigs and mobilise second workover rig.

Randeep S. Grewal, Chairman and Chief Executive of Greka Drilling, said: 

'Though 2017 was still a challenging year, we saw a significant increase in drilling activity during the latter half of the year in China.' 'We expect a stronger drilling mandate during 2018. With firm drilling contracts signed with state owned enterprises, we start 2018 with a materially stronger foundation than last year.'

'Over the course of 2017 we signed an additional six drilling mandates for a total of 70 wells, of which 35 wells were completed by the yearend.' 'With the strong surge in drilling activity in China we expect to secure more drilling mandates and a greater drilling fleet utilization in 2018.'

'In India, with the pricing freedom around CBM, we would expect to see enhanced drilling activities in the years to come.' 'In the near term, we wish to get transparency from ONGC on its drilling commitment and planned activity.' 

Once past contract matters have been concluded with our current customer Essar Oil, we would hope to enter a new mandate for drilling in 2018.' 'Furthermore, we continue to discuss drilling campaigns with other operators within India.' 


At 9:52am: (LON:GDL) Greka Drilling share price was -0.25p at 1.93p