AJ Lucas has sold its Underground In-Seam Services (UIS) Business to Industrea for $25.5 million.
The company decided to sell its underground operation as it has focused its services on surface drilling, with underground drilling accounting for only 5% of its overall drilling turnover.
The sale consisted of seven drilling rigs and eight survey systems along with associated inventory.
Forty five staff were employed in UIS, all of whom have been offered employment by Industrea.
Chairman of AJ Lucas, Allan Campbell, said “the underground business is being sold because it is considered more of a mining services activity and therefore outside the company’s core drilling services capability. Additionally, it will free up resources to focus on our surface drill and well management activities.”
Industrea managing director Robin Levison stated that the acquisition and integration of this drilling company will add to Industrea’s gas management division.
Completion of the sale is scheduled for 15 March.
The UIS driller was originally spun out of Lucas’ Horizontal Directional Drilling arm and holds 44% of the market for underground in-seam drilling services in Australia.
It’s rigs consist predominately of Boart Longyear machines.
Lucas is currently one of the largest integrated drilling services providers to the coal and coal seam gas industry in Australia, with 89 rigs in operation.