Greka demerger agreed by Green Dragon shareholders

7th Mar 2011 23:07

Shareholders in China-focused coal bed methane producer and supplier Green Dragon Gas have voted in favour of the demerger of Greka Drilling Ltd. Cayman Islands-incorporated Greka provides coal bed methane drilling services in China. It operates eight truck-mounted specialised CBM drilling rigs and has 220 personnel. There are plans to buy a further 25 drilling rigs for up to $95m and they will require another 900 staff. Greka hopes to drill more than 100 wells this year. Revenues grew from $9.93m in 2009 to $24.3m in 2010 and it moved into profit in 2010. The relationship between Green Dragon Gas and Greka is not expected to change. Randeep Grewal is chairman and chief executive of Greka, as well as being chief executive of Green Dragon Gas. The demerger is in the form of a dividend to Green Dragon Gas shareholders and Greka is set to join AIM on 8 March.