Greka Drilling signs with China National Petroleum Corporation

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GRDGF4.500.00

LONDON (ShareCast) - Greka Drilling has signed a contact with China National Petroleum Corporation (CNPC) for works on an oil well in Shizhuang, Shanxi.

The largest independent and specialised unconventional oil and gas driller in China will provide its services to CNCP's well in the contract to be completed early next year.

CNCP signed up for Greka's LiFaBriC drilling operation after traditional services from other companies failed to meet expectations.

A LiFaBriC well will be drilled at CNPC's Zhengzhuang Block in the Qinshui Basin.

CNPC is China's largest state-owned energy enterprise and a controlling shareholder of PetroChina. The company has announced plans to drill up to 2,000 wells in 2013 across its property.

Randeep Grewal, Chairman and CEO of Greka Drilling, said: "The significance of securing a contract directly with CNPC is a defining moment in time for the company. We have set new milestones in the drilling services sector in China, both technical and operational. The years of research and development are starting to become understood and appreciated within China by those that matter."

He said the initial agreement could pave the way for future contracts with CNPC.

Greka is also drilling on Sinopec and Green Dragon Gas (Other OTC: GRDGF - news) properties during 2013.

Shares rose 4.23% to 9.25p at 12:35 Friday.


RD