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Greka Drilling receives five new rigs

Greka Drilling receives five new rigs

Greka Drilling (LON:GDL) told investors that it has now received five new rigs as part of its fleet expansion programme.

They are bespoke rigs designed specifically for Greka’s own coal bed methane drilling methodology, which is known as the lined faulted brittle coals – or LifaBric – process.

The rigs enhance utilisation rates through an improved drilling methodology, Greka said. It reduces the size of the rig team as well as reducing well drilling times.

All five rigs are expected to be working on contracted drilling sites by the end of this month. There are now twelve rigs in the Greka fleet.

Greka said that the roll out of new rigs is expected to continue on schedule. It expects that four rigs will be delivered to Greka each month.

The size of the fleet will reach 32 by May. After that Greka will have the option to buy a further 125 new rigs.

So far all the rigs are being deployed on Green Dragon Gas’ (LON:GDG) Chinese CBM acreage. 

Specifically these five rigs are moving to the Qinshui basin in Shanxi Province, where work is focused on production drilling.

The new rig fleet will also allow Greka to engage in lucrative third party contracts with companies already producing unconventional gas in China, it said.

"We are delighted to announce the arrival of the latest rigs, on schedule,” said chairman and chief executive Randeep Grewal.

“The relentless efforts by Greka's on-site Chinese engineers, fluent in Italian, working along-side a dedicated DrillMec manufacturing team committed to deliver on this aggressive schedule has made this possible. 

We expect this team effort to maintain on time deliveries throughout this program.

He added: “The Greka rig fleet is destined to evolve the efficiency of drilling for unconventional gas in China. 

“This development has attracted significant attention and our recent first rig launch ceremony was attended by a large audience which included government dignitaries, customers, journalists and residents.

“We have handled each of the elements that have impeded our customer's development of their gas resources. We intend to demonstrate this potential in 2012 for our current customer, GDG, and others as we continue to grow our capacity."

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