CBM Driller Greka Plans to Delist from AIM

Asia-focused coalbed methane (CBM) driller Greka Drilling announced October 1 it plans to delist from AIM as the costs of admission now outweigh the benefits.

“The costs of maintaining the company’s admission to AIM are not justified by the benefits gained from admission. The market capitalisation is well below the level at which it floated on AIM in March 2011 and there is limited scope for issuing new shares to fund the company’s growth or as acquisition currency due to the significant dilutive effect to shareholders,” it said.

The delisting is conditional on the approval of at least 75% of votes cast by shareholders, Greka said. If approved, the delisting will become effective October 30.

Greka at present has rig fleets based in Zhengzhou, China and West Bengal, India.