A day later, a possible answer to the question raised - Share Prophets are targeting 0p for this share.
TW is today saying there is no cash here and that a placing or insolvency are the next most likely outcomes.
Terrible if true, considering all the past RNS news about bonds and the allocation of funding for the drilling of GDG Lifabrics to generate revenue and cash flow in GDL.
Why has only part of the (first) 30 well batch been drilled (in 2015) with no indication of the timetable for finishing these off (now in 2016). This was meant to be 2014 activity, and already fully funded.
Why isn't GDL being allowed to continue with drilling for GDG and being delayed by years in the process?
Does anybody know please?
RNS 13.11.14 ? :
Mr. Randeep S. Grewal, Founder and Chairman of Green Dragon, commented:
"We are pleased with this debt issuance as it marks the first public debt capital raised by the Company. Since inception, Green Dragon has funded its discretionary growth through equity or convertible debt issuances resulting in the current net equity being in excess of USD600m. We expect to fund our continued growth with disciplined debt issuances so as to gradually increase the current debt to equity from 8% to 25% over time.
"We expect to conclude this phase of the drilling programme concurrently by placing additional debt by the second quarter of 2015 which should enable us to complete the entire 150 LiFaBriC well programme at GSS along with the continued development of our other prolific seven gas blocks".
The 150 well contract was announced in Jan 2014, that was 2 years ago.
It was meant to be executed in 2014.
Not even 30 wells have be drilled by connected party GDG, 2 years later, in 2016.
RNS Jan 2014:
Greka Drilling Limited (AIM: GDL), the largest independent and specialized unconventional oil & gas driller in Asia, is pleased to announce that its customer Green Dragon Gas Ltd, as part of its overall plan to drill 150 LiFaBriC wells in 2014, has made an initial order for Greka Drilling to drill the first 10 LifaBriC wells of the program.
The estimated value of the order is approximately US$15 million and will involve 5 rigs being mobilized in February 2014, after the Chinese New Year. The timing of the order is welcome as the first quarter is traditionally slow for drilling operations in the region as a result of adverse weather conditions.
NOVEMBER 18, 2015
BY CASEY MCCARTHY IN NOTABLE STOCK NEWS
Greka Drilling Ltd Cant Burn Your Long Portfolio. Has Another Strong Session
The stock of Greka Drilling Ltd (LON:GDL) is a huge mover today! The stock increased 2.61% or GBX 0.14 on November 17, hitting GBX 5.5. About 75,675 shares traded hands. Greka Drilling Ltd (LON:GDL) has declined 41.05% since April 20, 2015 and is downtrending. It has underperformed by 38.52% the S&P500.
The move comes after 8 months positive chart setup for the GBX 21.86 million company. It was reported on Nov, 18 by Barchart.com. We have GBX 12.05 PT which if reached, will make LON:GDL worth GBX 26.01 million more.
Greka Drilling Limited is a holding company. The company has a market cap of 21.86 million GBP. The Firm is an gas and oil drilling company. It currently has negative earnings.
The Company, through its subsidiary, Greka CBM Technical Services Co.
Hang on, let me just dodge that tumbleweed thats heading my way..........
Annual results were out on 10 June:
We are pleased to have navigated through a difficult 2014 for Greka Drilling. While we were prepared for a robust drilling campaign, our contracted clients were, for reasons outside of Greka Drillings control, not in a position to mobilise the drilling campaigns. The Company had little alternative but to wait and we are delighted that in Q4 2014 the first well was spudded for Essar and 2015 has seen further wells drilled under the Essar contract and mobilisation of the 30 contracted LiFaBric wells for GDG. The lack of drilling during the course of 2014 is reflected in the lower turnover and widening losses.
Similar to the China rig and personnel expansion during 2011/2012, we demonstrated in India a repeat capability to successfully launch a drilling service company from grassroots.
Two hundred degree-educated engineers were selected, recruited, trained and tested to launch the first-ofits-kind drilling company in India. The new workforce was complemented by members of Greka Drillings experienced Chinese teams and led by seasoned Company drilling
professionals. The new company in India was launched in Durgapur on 24 July 2014 and spudded its first well on 4 October 2014. The teams continue to drill wells with complete precision and are delivering wells to the clients satisfaction on a monthly basis.
Following two consecutive years of weakness, we are looking forward to a robust 2015. I am pleased to report that the year has started with increased activity levels and firm drilling mobilised orders such that we expect to significantly increase activity levels over 2014. As a service company the level of drilling activity is dependent upon factors outside of the Companys control. Greka Drilling has the capability to deliver the contracted 130 well drilling programmes for our clients
within 2015; however this will be dependent upon our clients own schedule and requirements.
Greka Drillings performance, which is driven by contracts with its key clients, is less exposed to oil price volatility than the wider oil field service sector. Our clients businesses operate
exclusively within a regulated gas market which is de-coupled from global oil price volatility. The regional nature of these regulated gas markets in China and India provide for a stable long term transparent view of government objectives within which our clients have planned their drilling campaigns. We expect these markets to continue their stable expansion and for our clients continued confidence to be reflected in their drilling campaigns. Greka Drilling has focused on these very gas markets as a matter of strategy.
yes saw the update as well wtg, pretty good and added more today to average down, stupid or what, time will tell, but I am struggling to find a company trading in AIM with so much revenues on the pipe line and not being reflected on the sp...
As a comparion, sometimes I do envy some of the tech company valuations with rediculous PE ratio where their sp keeps going up and up...
Volatility is expected until some concrete indication of operational performance arrives.
No news as yet, but there does appear to have been an element of pump and dump again, but hopefully this will be overridden by more consistent steady gains over the course of time.
Also, a lot of garbage about "research" into GDL being spouted on some sites. The information that is available, is all that is available. The main factor now is that drilling is finally going to happen and the required financial backing is now there.
Would be nice to hear more information from India, beyond the fact that the first well was spudded some time back.
A rapid part-recovery. Hopefully more to go.
Definitely worth more next year, but what is today's value. Difficult to say. Sadly, a characteristic of AIM activity, (but to our benefit) - any imminent RNS announcements on India progress; the GDG drilling program; or contracts, could further promote the cranking up of the share price.
Would have preferred nice steady even progress continuing until fair price is attained next year. Peaks and troughs always an AIM nightmare.
Good find GMTF, I am still here as last post was round about August time, as I seem to see alot more discussions on LSE than here.. But never the less, excellent announcement from GDG and even the sp went down recently, I still kept my holding as I believe GDL is something big in the making and just watch out for those revenues come in with those drills.
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