Greka Drilling wins new contract from PetroChina

Oil and gas miner Greka Drilling has won a second contract with PetroChina Huabei Oilfield to drill five wells, for an undisclosed fee.

The AIM-listed company agreed to a one year contract to drill five horizontal wells in the Fanzhuang Block in Shanxi Province, China.

The company previously drilled 13 wells, or 19,257 meres, for PetroChina from 2013-15 .

Greka Drilling’s chairman and chief executive, Randeep Grewal said: "The winning of this five horizontal well contract proves once again that PetroChina recognizes Greka Drilling as a quality drilling company with advanced rig technology and experienced crews.

“PetroChina is also expected to commence a 100 cluster wells drilling project in Anze Block in 2017, which represents a significant further opportunity for us. Following an expected slow 2016, we are hopeful that 2017 will be a busy and fruitful year for Greka Drilling in China."

Shares in Greka Drilling were up 3.76% to 2.62p at 1052 GMT.