The moment could be perfect to get into Greka Drilling. It appears to have a good base in China with strong Third Party agreements.
Opening a office in Singapore and looking at India as the next step.

SP dropped back after some profit taking.

There could be a tie up with Essar Energy but this is my speculation.

50day SMA just crossing the 200 SMA is a good sign.

Today is the day

code 1 at 13.31pm

Legend has it that a code 1 means there's an RNS logged

Could be the news I have been waiting for.

well today was not the day after all and no news so the code 1 legend can be used for evil purposes.

It looks like the market makers decided to play with everyone, could be the last tree shake but who knows.

Fundamentals' are good just need to have some news on contracts, but which one India, CNPC ?

RNS - Contracts news looking positive, first half year problems resolved. India looking positive with the prospect of news soon.

Interim report next week could have some bad news re first half turn over.

Keep watching

Up 24 % today and not a mention on here

up around 60 % over the last 12 days.

All appears to be on rumour, new contracts, possible expansion into India and expanding customer base.

Potential appears huge can they cope?

Green Dragon Gas (GDG:AIM) plans to produce 18.5 billion cubic feet of natural gas from its coal bed methane properties in china in 2014. A reiteration of this goal alongside the company’s interim results this week (23 Sep) is lighting a fire under Greka Drilling (GDL:AIM), up 9.1% to 21.9p since the announcement.

Using valuation metrics based on multiples of earnings before interest, tax depreciation and amortization (EBITDA), broker Macquarie believes Greka’s shares are worth 36p. The pace of activity at Green Dragon, traditionally its main customer, should help it to meet this target.

In the first half of the year Green Dragon’s output was just 1.34 billion cubic feet. Greka, itself spun-out out of Green Dragon back in March 2011, specializes in drilling for unconventional gas and its LiFaBric methodology specifically addresses China’s complex geology. It has a fleet of 32 rigs and more than 700 technical and field employees on its roster.

Concerns over the validity of Green Dragon’s permits in china meant just 24 wells were drilled in the first half of the year, a significant reduction on the usual levels of activity. These issues were resolved in July when the Chinese government reissued its licenses and Green Dragon’s drilling program resumed in earnest.

In a bullish update last month (29 Aug) Greka said it expected to finish 2013 with a diversified customer base and a healthy backlog for 2014. The company has secured contracts with the Chinese state energy firms Sinopec(0386:HK) and CNPC, the parent company of Petrochina(0857:HK). Greka is targeting work in India and is also in the process of pursuing a listing on the main board of the Singapore stock exchange.

Results for the first six months of 2013 are due to be released imminently although the date is as yet confirmed.

GDL have some problems and it could be GDG are about to fall out with GDG customers over drilling on there liecences

The story unfolds below, China is still frontier stuff.

Significant Drilling Development

Posted: 08 Oct 2013 01:47 AM PDT


Green Dragon Gas Ltd. (AIM: GDG), one of the largest independent companies involved in the production and sale of CBM gas in China, is pleased to announce that following the reissue of the licences in July 2013, the Company has discovered that a number of wells were drilled on five of its six PSC blocks pre July 2013 by a number of Chinese CBM gas companies (the PSC in Guizhou was not the subject of such drilling). As stated in the Company’s announcement on 10 July 2013, the Chinese government has reissued the licences covering the Shizhuang North (Shanxi), Qinyuan (Shanxi), Fengcheng (Jiangxi) and Panxie (Anhui) exploration blocks, as well as the commercial production block Shizhuang South (Shanxi). The Company believes that revenue and reserves from the wells drilled by these companies will accrue to the benefit of Green Dragon.

The Company has been in continuous dialogue with the PRC Government and its controlled entities China National Offshore Oil (CNOOC), CNPC, PetroChina and China United Coalbed Methane Corporation (CUCBM) regarding their drilling activities across the Company’s PSC blocks. Through such communications, it has been revealed that these companies drilled a total of c. 1,500 wells across these blocks. The Company has requested from these entities, as well as from the Ministry of Land and Resources, all information pertaining to these wells. Of the c. 1,500 wells drilled, it is estimated that c. 1,300 have been drilled across the Company’s Shizhuang South PSC (GSS), whilst the others have been drilled on the four other exploration blocks. The Company has been informed that capital expenditure on these 1,500 wells exceeds US$500 million.

Once the Company is in receipt of the information requested, in accordance with its annual practice, an independent evaluation of the material accretive impact to the 1P, 2P and 3P reserves will be conducted and the results disclosed. The invested capital will also be audited and may be subject to the terms of the PSCs for cost recovery.

The Company’s licences on the impacted five PSC’s cover an area of 6,620 sq km and its operational focus has been to concentrate on proving up certain distinct areas of these licences. Consequently, the information about the scale of these third party wells only came to light as a result of the reissue of the licences and the subsequent on-going dialogue.

Randeep S. Grewal, Chairman and Founder of Green Dragon, commented:

“Our compliance with the contractual terms and adherence to Chinese law and confidence in the Central Government was boosted by the re-issuance of the exploration licenses in July 2013. Significantly, these licences were backdated to account for the continuous period of the PSCs, re-confirming that they were indeed in full force and effect. We have been steadfast in this position since inception.

However, we have been over-whelmed by the discovery of the number of the wells drilled. Whilst we had previously given notice of PSC violations to CUCBM for the wells they drilled on Green Dragon’s blocks, we were unaware of the extent of their actual activity as well as that of CNOOC, CNPC and PetroChina. Our field teams are diligent in the concentrated areas where we explore, develop, produce and sell the CBM in accordance with the terms of our PSCs. It is impossible to be vigilant over the entire 6,620 sq km (1,635,837 acres) of licence area. Once all the information is received as required by the re issuance of these licences, we will quantify the effect on our production, reserve progression and revenue. We expect the accretive impact to be material in each of these categories. Furthermore, until such information is ascertained, we will prudently suspend any aggressive drilling campaign or related financings, so as to absorb all of this material information. Additionally, our experienced technical staff will also account for the well type drilled in these campaigns and we will adjust our efficient and proven LiFaBriC wells patterns to accommodate the findings.

We are committed to amicably concluding the material impact within our PSC areas in various aspects and look forward to capitalizing on this accelerated development to significant commerciality. However, we stand ready to enforce our PSC rights in the event there is any procrastination on such a mutually beneficial conclusion.”

inteview with Randeep Grewal

High lighted the poignant sentence. When they announce this expect the SP to lift off.
Essar RNS
Exploration & Production At Essar Oil's flagship Raniganj CBM block, current gas production is around 100,000 standard cubic metres per day (scm/d). We have drilled 170 wells and completed hydrofacturing of 155 wells. Peak production is expected to be about 3.00 mmscmd.We are planning to appoint an expert agency to accelerate our drilling program. We have invested around Rs 1,775 crore as of September, 2013 while the total investment is expected to be Rs 3,500 crore. With the new gas price regime kicking in from April 1st, 2014, gas price is expected to be much better from current $4.2 /mmbtu. We see this as a welcome reform by the GOI which would boost investments in the E&P sector followed by ramp up in production, curb expensive imports, promote exploration and increase government revenues. This will also be positive for E&P companies as their profitability increases and also the new gas fields will become viable thereby boosting the domestic gas production.

In 2013 we were treated to a couple of major charting events from Greka Drilling (GDL), something of the magnitude you might expect from a minnow which is volatile, but with the implication that trying to guess when the next spike may come in is always going to be a difficult exercise.

There was a final surge for the shares in December which was a one day wonder, through the 200 day moving average – a classic false dawn if you chased the stock after the move materialised.

Therefore, it may be worth looking at the shares as they are now after a period of extended consolidation. An entry at or near current levels would clearly be good for those concerned about getting in on the long side on a bull trap.

It should be noted how the price action has been supported by a rising trend line in the RSI window, as well as a line of support from July towards 12p. This combination offers a buy opportunity at current levels with a weekly close back below 12p offering the chance of a range floor buy.

But it may be the case that most traders would wish to wait on an end of day close back above the 50 day moving average at 13.83p before targeting a retest of the November peak towards 20p.




- See more at: http://www.shareprophets.advfn.com/views/3512/greka-drilling-buy-positive-momentum-building-for-rally-back-through-20p#sthash.zQDj29sy.dpuf

Share price is recovering after a large sell out.

$100m contracts for 2014 inc. deal with Essar in India

More deals to arrive

looking attractive at this point.

Greka Gas confirms 150 well drill program for 2015. GDL order book Page 20 .

This is the news I've been waiting for. fingers crossed

Expectations of some big contracts about to arrive.

China contracts on the way

broker recomendation