Greka Drilling Share Discussion Threads

[guru121] 14/6/2015 22:34

Reliance Order
Reliance is believed to be exploring Greka’s successful use in China of advanced and more expensive LiFaBric horizontal drilling technology for development of its twin Sohagpur East and West Blocks in Madya Pradesh. “Reliance wants data of wells drilled in India using LiFaBric”, adds a source. “But Greka hasn’t used this technology in India at Essars block. Greka promised Essar that two to four wells using LiFaBric would be drilled but so far no LiFaBric wells have been drilled at the Essar block.”

A decision on this contract was due in June.
Hopefully,good news will be announced at the Agm.:)

[daftbat] 19/5/2015 09:40

Waste of time emailing the company. They never reply

[daftbat] 19/5/2015 09:11

Defected, where you hearing that from?

[guru121] 13/5/2015 22:45

The Bigger Picture!
China gas drilling company Greka Drilling (LON:GDL) is confident it can reignite its fortunes this year.

Since splitting from former parent Green Dragon Gas (LON:GDG) four years ago, the firm has had a tough time.

Drilling activity has been hampered by a lack of available sites and a slowdown by its GDG, which remains its largest customer.

That, in part, has contributed to a 30 per slide in its value over the past twelve months with shares now at 8.5p.

But in the firm’s full-year results, issued last month, Randeep Grewal, Greka’s chairman and chief executive was decidedly bullish.

Despite revenues falling to US$24.4mln (US$30.5mln in 2013), and a loss of US$5.3mln (profit US$1.1mln), Grewal said he was “truly excited” about the company’s prospects.

Importantly, drilling activity is picking up. Greka recently mobilised for a further thirty wells in China for GDG while it has a further 100 under contract for third parties.

Meanwhile, at the end of 2014, it started drilling on the first well on the US$65mln contract for Essar Oil in India.

Grewal also stressed that Greka is less exposed to oil price volatility than the wider oil field service sector as its customers operate exclusively in a regulated gas market.

“In our view, the recent slowdown in activity is an opportunity for GDL,” research firm Edison claimed last year.

It reckoned significantly improved drilling efficiencies, and hence costs, during the time would boost the margin of residual contracts held in the group’s backlog.

It’s a view which still holds weight, according to Charles Stanley analyst Michael Donnelly.

Critically, for him, April’s update showed no apparent slippage in the main Chinese and Indian contracts.

“The momentum in the business has clearly increased materially in the latter half of 2014,” he said.

“We expect some US$40mln of revenues in 2015 on a gross margin of 26%.”

He did, however, note that the discretion of GDL’s clients to delay mobilisation of orders means there’s some degree of caution on his forecasts.

It is estimated that three-quarters of China's gas reserves base consists of unconventional gas.

According to industry predictions, by 2020, unconventional gas production may account for 30% of China's total gas output.

To maintain its competitive edge, Greka has developed the LiFaBriC (Lined Faulted Brittle Coal) methodology.

It’s a unique technique specifically designed for the complex geology experienced in China.

The method – an adaptation of the horizontal drilling methods traditionally used for drilling in coal seam reservoirs - is not only extremely efficient but is also an environmentally friendly technique which removes the need for fracking programs.

[yajnas01] 07/5/2015 01:02

been in this for ages now... is this ever going to come good?! I can't really understand why the share price has ebbed away so much! I thought we are now looking at making profits this year aren't we? or am i mistaken...

i thought we had the india deal and some work for GDG... surely once we are profit making this company should be rerating quite a bit? or have i missed something?

[guru121] 06/5/2015 12:07

Drilling Programme
We believe that completing the 30 well programme is an important step for
Green Dragon, and news that the drilling programme has started is welcome. We
understand that the contractor, Greka Drilling, has 10 rigs set aside for the
programme and, based on a 30 days/well assumption, we estimate the campaign
could be completed in c90 days. However, as the company is also undertaking
completion work on the 22 previously drilled LiFaBriCs, we anticipate both
programmes completing in around Q3/Q4.

[guru121] 06/5/2015 12:05

Development of GSS
In addition to the 30 well LiFaBriC campaign in 2015, we estimate significant
further drilling will be required in order to fully exploit the reserves on the GSS
block, in both Coal Seam 3 and Coal Seam 15.
Our modelling indicates that to develop the 371Bcf of 2P reserves on GSS, an
additional 233 LiFaBriC wells would be required, at a total gross cost of c$550m
($330m net), including costs to tie the wells back to the installed IPFs. We
assume that these wells are completed during 2016-18.
To develop the estimated 3P reserves on the block, we forecast that a further
1,612 LiFaBriC wells are required. In total, these wells would cost c$2.4bn
($1.46bn net) and would occupy 25 of Greka Drilling’s 27 GD75 rigs. We
estimate these wells would be drilled over a period of seven years, from 2016-22.
Access to material additional funding would be required in order to complete this
many wells in this timeframe. However with the PSC set to expire in 2033, rapid
development is key to extracting maximum value from each well drilled.
Management has indicated that the company will consider farm-down of equity
in the PSCs in order to help fund additional development drilling.JTran

[flying pig] 13/4/2015 08:50

Results out - look a tad mixed over last year but promise to come. (Some shares are always promise of jam tomorrow).

[johnwise] 26/3/2015 16:00

Some large trades in the past few days.. Expecting some positive news?

This is from the Operations Update 27 January 2015

New contracts expected within China and India
- Decision on expansion into new geography

[defected] 26/3/2015 09:34

All looking very good here. Interesting times ahead.

[mikealig] 26/3/2015 08:51

Good news yesterday from Green Dragon endorsing the LiFaBric technology. Starting to creep up in recent days. Looking a bit more hopeful.

[guru121] 28/2/2015 19:43

Feel free to post/riposte here, my friend;)

[defected] 26/2/2015 19:12

Some good stuff being posted on LSE. Robinhood certainly knows his stuff. Won't be long before this takes off imho.

[guru121] 09/2/2015 16:48

Stay long & strong my friend,watch out for q2.

[defected] 03/2/2015 15:54

Green Dragon Gas presenting at Oilbarrel conference in London tomorrow. Will be interesting to see if anything Greka related comes out from that.70th Oilbarrel Conference- Eventbritehttps://www.eventbrite.co.uk/.../70th-oilb...Mobile-friendly - Eventbrite - Oilbarrel.com presents 70th Oilbarrel Conference - Wednesday, 4 February 2015 at The Brewery.The Brewery, EC1Y 4SD London, United Kingdom?Wed 4 Feb?

[defected] 30/1/2015 12:54

Noticed some big trades last 2/3 days. Further news due?

[defected] 28/1/2015 20:17

The prospects are outstanding and I'm sure it will come good. The current share price is based on low market sentiment but that could turn with the drop of a new contract in China, India, Indonesia. Little bit of patience required.

[gavapentin] 28/1/2015 12:47

yet the price still falls

[johnwise] 27/1/2015 16:05

2015 OPERATIONS OUTLOOK


New contracts expected within China and India

Decision on expansion into new geography ??