Greka Drilling Limited ONGC issues LOA to Greka Drilling (2633I)
June 16 2017 - 1:00AM
UK Regulatory
TIDMGDL
RNS Number : 2633I
Greka Drilling Limited
16 June 2017
16 June 2017
Greka Drilling Limited
("Greka Drilling" or the "Company")
ONGC issues LOA to Greka Drilling
Greka Drilling Limited (AIM: GDL), the largest independent and
specialized unconventional oil & gas driller in Asia, is
delighted to announce that, further to the announcement on 6 April
2017, it has been awarded a Letter of Award (LOA) for a three year
drilling contract (the "Contract") by Oil & Natural Gas
Corporation Limited ("ONGC") for ONGC's Bokaro CBM asset in
India.
ONGC, the Indian Government-owned company, is the largest
exploration & production ("E&P") company in India and
engaged across the E&P and refining businesses. ONGC also has
extensive joint ventures globally.
Under the Contract, the Company will deploy one of its
purpose-built efficient semi-automated GD75 rigs based in India.
ONGC plans to drill 73 wells over the next three years using this
state-of-the-art rig which has a proven track record of drilling in
similar geological conditions. The project will entail the
provision of drilling and mud services along with the provision of
associated equipment and is estimated to generate total revenues of
US$15 million over the three year period. The LOA is subject to
contract and to the issue of a performance bond.
Randeep S. Grewal, Chairman & CEO of Greka Drilling,
commented:
"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 specialized 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."
For further information on Greka Drilling, please refer to the
Company's website at www.grekadrilling.com or contact:
Sarah Lowther
Media Relations
Greka Drilling +44 (0)7931 838144
Dr Azhic Basirov / David Jones / Ben
Jeynes
Nominated Adviser and Broker
Smith & Williamson +44 (0)20 7131 4000
This announcement is inside information for the purposes of
Article 7 of Regulation 596/2014.
This information is provided by RNS
The company news service from the London Stock Exchange
END
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