AIM-listed Greka Drilling, the largest independent and specialized unconventional oil & gas driller in Asia, has been awarded two new drilling contracts with PetroChina Huabei Oilfield (a subsidiary of CNPC) in addition to the one currently in progress. These two drilling contracts are to be deployed in PetroChina's CBM (coal bed methane) Blocks - Fanzhuang and Anze - within Shanxi Province and are estimated to have an aggregate value of at least US$2m.
• The contract for the Fanzhuang Block is for one year with a scope of 16 wells consisting of vertical/directional production wells as well as exploration wells. The drilling is planned to start by month end, following the completion of the 6 horizontal wells from the previous contract.
• The contract for the Anze Block is for two years with a scope of at least 10 directional wells to be drilled on two multi well pads.
In the previously-announced contract consisting of 5 horizontal wells for PetroChina in the Fanzhuang Block, as planned the first well was spud in February 2017 and four horizontal wells have been successfully completed. The client has increased the well count by an extra horizontal well, for a total of 6 horizontal wells under this contract. A second rig has been mobilized to this block to drill the additional well. The 5th and 6th wells are currently being drilled and expected to be completed this month.
Mr. Randeep S. Grewal, Chairman of Greka Drilling, commented: 'We are very pleased with the repeat contracts from China's flagship energy company - PetroChina CNPC. The repeat nature of the contracts is confirmation of our drilling proficiency and technical capability. Among the significant number of state-owned drilling companies, Greka stands out as the only independent foreign drilling contractor sustainably providing services within the CBM sector in China to the majors.
These contracts further confirm that the service sector in China has turned the corner following three years of stagnation. The government's steadfast support for the development of the CBM resources is the catalyst to enable the revitalization of the sector of which Greka Drilling stands to be a natural beneficiary.'