Greka Drilling Ltd (LON:GDL) expects to drill as many wells in India as China this year as activity slowed in the first half. The unconventional oil and gas drilling specialist saw the number of metres drilled reduce by 52% as oil prices struggled, with 12,458m drilled compared to 26,367m a year ago. India provided the bulk of this with seven wells drilled as part of a contract with Indian giant Essar.
Greka hopes to complete 30 wells over the remainder of 2016 by two rigs as part of the Essar contract. Talks are also at an advanced stage with other oil and gas companies for work in the central part of India said chairman and chief executive Randeep Grewal. Previously, most of Greka’s contracts had been in China for former parent Green Dragon Gas, but only two wells were drilled in the first half though Green Dragon has indicated an eight well programme will start in the autumn.
Other drilling expected to start this year in China for other customers includes six wells in November 2016 and six directional wells for tight gas. Grewal added: “We had previously advised the market that we expected this year to be challenging while the oil & gas operators realign their portfolios to the new oil price environment. “During this period we continued to take steps to reduce costs, improve our drilling efficiency and diversify our services and customer base.
“In India we won a new contract from Essar Oil to provide drilling for vertical and directional wells on a day-rate basis. “In China it is anticipated that a number of larger E&P companies, including Green Dragon Gas, will start their programmes for 2016 in H2.” Buster Posey Womens JerseyShare This