Greka Drilling net profits up 39%

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Greka Drilling posts net profits of $2.8m for the year to the end of December - 39% up on last time.

Revenues were up 80% at $43.8m and earnings per share rose to $0.006 from $0.005.

Chairman and chief executive Randeep Grewal said: "It has been an exciting and rewarding journey for shareholders and employees alike.

"The rate of our expansion has been at times challenging following the move from being the in-house driller of Green Dragon Gas to being the largest independent and specialised unconventional gas driller in China.

"The pace of our growth is underpinned by a methodology of drilling within Chinese coal seams and is driven by our goal of matching the pent up demand that exists for this expertise.

"Our pioneering ability to 'crack the code' of one of the most challenging geology's globally was built through knowledge, experience and tenure.

"No other company in China has advanced the aspirations of the country to deliver its unconventional gas resource as we have. Today we can truly claim the mantle of a pioneer.

"Indeed, China is beginning to acknowledge the problems we have faced, with the heavily faulted coal seams being frequently referred to in the public domain as an impediment to the commercialisation of unconventional gas.

"The 12th five year plan lays out specific targets for unconventional gas production in China.

"With our methodology deploying at a fast pace at Green Dragon Gas's Shizhuang South block, the scene is set for deployment across other locations throughout China, and for multiple customers.

"We believe that third party contracts are imminent.

"The company is scalable, skilled and staffed.

"We expect to be able to fund the future growth of the company in part with debt from Chinese banks as we continue to take deliveries of our new Greka Drillmec rigs."

Date: 10 April, 2012
Author: Unknown