Unconventional gas sector engineering company Greka Engineering & Technology Ltd. (AIM: GEL) is trading up 133% this morning, after announcing that they have entered into a construction contract with China United Coalbed Methane Corporation, the state-owned Chinese coalbed methane company.
The contract is to modify the power facilities of four valve groups for the purpose of connecting and powering 56 CUCBM wells and follows the successful pilot program to connect one valve group to power 10 of CUCBM’s wells which completed in 2014. Greka Engineering will be responsible for power line construction and support equipment installation.t
The work is to be completed by December and is expected to result in the ongoing supply of power by Greka Engineering to the connected wells.
Randeep S. Grewal, Chairman of Greka Engineering, commented:
“We are pleased to see the development of our relationship with CUCBM. With over 1,500 wells ultimately requiring connections to power grids at the GSS block, this represents an excellent growth opportunity for the Company, which should both expand our engineering footprint and contribute to the Company’s profitability this year and beyond.”