Greka Drilling says it drilled much more in 2015

The AIM-traded firm - the largest independent and specialised unconventional oil and gas driller in Asia, according to its board - drilled a total of 62 wells in 2015, a 38% increase year-on-year.

Of those, 53 were frilled in China and nine in India. While 51 were drilled for Green Dragon Gas, the other 11 were for clients including Essar Oil and PetroChina.

In metreage terms, a total of 76,690 metres was drilled during the year - a 31% increase over 2014. Some 66,770 metres were drilled in China and 9,920 in India.

The company's board said 62% of the drilling distance was on specialised lateral or directional wells using MWD tools (measurement while drilling).

Chairman and chief executive Randeep Grewal said he was pleased the company drilled almost a third further than in 2014.

"In addition, our drilling efficiency continues to improve as evidenced by the ongoing reduction in the drilling days per well", he added.

"Our performance in December was demonstrative of the company's capability and optionality, with 13,200 metres drilled in China using only eight rigs."

Greka improved its performance during the year, with the average drilling time for LiFaBriC lateral wells from spud to completion being 32.3 days, compared with 37 days in 2014.

Looking ahead, the company was focusing on its relationship with Green Dragon Gas for the continuation of their LiFaBriC optimisation programme, and reducing its fixed costs while retaining talent through the first half of the year, which was expected to have limited activity.

The company's board said it believed that, outside of its existing markets, Europe and Australia had the highest potential for Greka's services in the near future.

"Although the CBM production business in China remains one of the most attractive gas production markets in the world, and we remain bullish on the medium to long prospects for CBM in India, Greka Drilling is not immune to the crisis that has hit the oil & gas industry", said Grewal.

"Thus, we continue to focus on taking actions to reduce our fixed cost base during the industry downturn and push towards a business that has a primarily valuable cost structure, strong operational operability and diverse client base", he concluded.