Third parties sign up with Greka

Third parties sign up with Greka

Greka Drilling (GDL) has secured a contract with state-owned China National Petroleum Corporation (CNPC) just three weeks after it announced that it had won a 100 well contract for Sinopec centred on China's Ordos basin. The CNPC deal involves the use of GDL's proprietary LiFaBriC production method for a coal-bed methane gas deposit in CNPC's Zhengzhuang block, with deployment of an initial two-well programme expected during the first quarter. If successful, it is expected that CNPC will roll-out the LiFaBriC method across the Qinshui basin, where traditional drilling methods have failed to deliver satisfactory flow results. The CNPC and Sinopec deals represent Greka's first third-party contacts since it was spun out of parent company Green Dragon Gas (GDG) in 2010. Although Greka's operations are underpinned by long term contracts linked to GDG's drilling programme in China, the new deals could afford opportunities for growth, particularly as CNPC is planning to drill as many as 2000 wells across its onshore acreage this year.

To continue reading, register today

to enjoy limited access to the following:

  • Daily trading news
  • Funds coverage
  • Features on big investment themes
  • Comprehensive companies coverage
  • Economic analysis
Subscribe to Investors Chronicle

Related topics

Subscribe today

Full access for just £3.37 a week:

• Tips and recommendations - to beat the market 
• Portfolio clinic & Mr Bearbull - build a well-planned portfolio 
• Expert tools - track and manage investments effortlessly
• Plus free delivery to your home or office

Subscribe Now