A contract with China United Coalbed Methane Corporation (CUCBM) has boosted the share price of Greka Engineering & Technology Ltd.
The share price more than doubled at one point in the day but ended trading at 1p, up 0.43p, which values Greka Engineering at £4.1m. Greka supplies gas engineering products and services, including pipeline gas compression technology.
The contract is to connect and power 56 wells. This involves constructing the power line and installing other equipment. There are many more wells that will need to be connected in the area.
In the first half of 2015, 10km of gas pipeline was constructed, taking the total to 51.9km. Greka processed 661,250,000 cubic feet of gas, which was 16% ahead of the first half of 2014.
In 2014, revenues increased by 41% to $5.2m but the loss rose slightly to £2m. Net debt was 42.08m at the end of 2014. The growth in revenues came from infrastructure services.
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