Greka Drilling Limited ONGC issues LOA to Greka Drilling (2633I)

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                        [phone] 
 
Dr Azhic Basirov / David Jones / Ben 
 Jeynes 
 Nominated Adviser and Broker 
 Smith & Williamson                    [phone] 
 
 

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

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June 16, 2017 02:00 ET (06:00 GMT)