Greka Drilling shares up more than half on India contract win

Shares in Greka Drilling have risen by more than half after it won a three-year integrated drilling contract with Oil and Natural Gas Corporation Ltd (ONGC) for that company's Bokaro CBM asset in India.

Indian Government-owned ONGC was the largest exploration & production (E&P) company in India and was engaged across the E&P and refining businesses. ONGC also had extensive joint-ventures globally.

Greka Drilling was among 17 bidders, and it said ONGC was now completing its internal procedures before issuing a letter of intent to the company.

"The LOI, which is expected to be issued during April 2017, is expected to provide, subject to contract, for the drilling of 73 wells over the next three years."

The project would entail the provision of drilling and mud services along with the provision of associated equipment and was estimated to generate revenues of a total of $15m over the three year period.

Following receipt of the LOI, Greka said mobilisation of the GD75 rig was expected within 90 days.

At 10:34 GMT, shares in AIM-listed Greka were up 5.185% to 4.1p each.