Greka Drilling’s increased drilling failed to close its loss before tax margin.
The firm drilled 62 wells in 2015 – a 38% increase on the previous year’s 45.
A total of 76,690 metres drilled in 2015 – a 31% increase year-on-year.
However, the firm’s loss before tax widened to $7.5million, up from 2014’s $5.3million loss. The company said the loss was principally due to foreign exchange loss due to US$ appreciation against RMB. Foreign exchange losses in 2015 were S$3.6million compared to 2014’s $800,000.
Annual revenue increased from $24.4million to $7.5million.
Greka Drilling is the largest independent and specialised unconventional oil and gas driller in Asia.
In December 2015, Greka drilled 2,277 metres per rig per month in China, compared with 1,890 metres per rig per month in December 2014.
Chief executive Randeep Grewal said: “In 2015 we accomplished a 23% increase in revenues despite the challenging environment faced by the global drilling industry due to the rapid collapse in the commodity prices. However our earnings were adversely impacted by foreign exchange losses and by our ongoing investment in India, where we have the only fleet of modern CBM-tailored rigs and we are at the forefront of developments in the CBM industry. We are delighted that Essar Oil Limited recently remobilised two of our rigs in India for drilling in the Raniganj block, which vindicates our commitment to the India market.
“In response to limited drilling opportunities in the first half of 2016, we have been taking steps to reduce the fixed cost elements of our business and we are delighted to have procured a US$5 million working capital facility, as announced on 31 March 2016. We are encouraged by the increasing attention in the CBM markets on the benefits of lateral wells, where Greka Drilling is a pioneer with our LiFaBriC technology, and for which we anticipate significant business when the drilling market recovers.”
