Greka Drilling Ltd. has been awarded a second contract by China National Petroleum Corporation’s (CNPC) Huabei Oilfield Company for the Anze coal bed methane (CBM) project in Shanxi, China.
CNPC is China’s largest state owned energy enterprise and a controlling shareholder of PetroChina, amongst others.
The Anze CBM Project in Shanxi is a newly developed area, established in 2013, which lies 55 km northwest of Shizhuang South.
The target coal seams are between 1000 – 1400 m deep. During 2013, 110 wells will be drilled by CNPC self owned rigs and Greka Drilling. The planned wells will be vertical and directional.
Greka has already completed its first well and is currently drilling the second. The first well was successfully completed in 74% of the budgeted drilling days.
Randeep Grewal, Chairman and CEO of Greka Drilling commented: “We look forward to becoming a standard service provider to CNPC.”
“The LiFaBriC well drilled for CNPC that was successfully completed in April is being tested for flow rates and once the results of these tests are completed it is our belief that more of these wells will be commissioned,” Grewal said.
“China’s aggressive targets for unconventional gas production in the 12th Five Year Plan (FYP) will be met if the focus by producers is on actual long term stable gas production whilst balancing these goals with the environmental benefits that LiFaBriC offers,” Grewal concluded.
Greka has pioneered the use of LiFaBric technology, which gives is a different method of drilling for coal bed gas compared to traditional methods.The market reacted positively to the news, pushing shares in Greka up to 22p in early trading from the previous close of 18p, though the price has since ebbed a little to 20p.
Adapted from press release by Samuel Dodson.
Read the article online at: https://www.worldcoal.com/cbm/20062013/greka-drilling-targets-chinese-coal-bed-methane_431/