Greka Drilling secures state gas drilling deal and eyes more

20th Jun 2013 09:20

Chinese oil and gas services provider Greka Drilling has won a contract with the country's state energy company China National Petroleum Corporation (CNPC).CNPC's Huabei Oilfield Company has contracted Greka to drill for hard-to-reach gas at the Anze coal-bed methane (CBM) project in Shanxi province.The AIM-listed unconventional drilling specialist will contribute to the drilling of 110 wells during this year, divided between CNPC's rigs and Greka's.Greka has already completed its first well of the Shanxi project in 74% of the budgeted drilling days and said it was currently drilling the second.Randeep Grewal, Chairman and CEO of Greka Drilling, lauded the winning of repeat business from CNPC and said: "We look forward to becoming a standard service provider to CNPC. The efficiencies we can provide through our highly trained and skilled workforce, aligned with our modern drilling fleet, are being recognised."He cited a previous unconventional well drilled for CNPC using Greka's specialist 'LiFaBriC' lined faulted brittle coals drilling process, which was successfully completed in April and was now being tested for flow rates, could lead to more business.Grewal said he believed that once the results of these tests were completed more of these wells would be commissioned. "China's aggressive targets for unconventional gas production in the 12th five-year plan will be met if the focus by producers is on actual long term stable gas production whilst balancing these goals with the environmental benefits that LiFaBriC offers."Shares in Greka Drilling were up 11.11% to 20p at 09:45 on Thursday.OH