Ausdrill secure fresh contracts on two continents

Forecasts for the year ahead are looking up for Perth-based driller and mining services company Ausdrill, which today announced four new contracts across Australia and Africa.

Two contracts with Anglogold Ashanti are worth a combined US$153 million, for mining services at their Iduapriem and Sigiri mines over 36 months with a possible 12 month extension.

Ausdrill said these contracts require minimal capex as most equipment will be sourced internally.

In addition, a five year contract extension worth around US$147 million has been awarded by Endeavour Mining for the Nzema gold mine in Ghana, where Ausdrill have been providing services since 2010.

In Australia, Ausdrill’s subsidiary Energy Drilling Australia (EDA) will soon have two Schramm rigs in the Cooper Basin, servicing a multi-well program for Senex.

Over the next six to nine months EDA will also fulfil a contract for five wells in the Northern Territory, as part of Statoil’s evaluation of the shale prospects in the South Georgina Basin.

EDA is the first Australian contractor to be appointed by Statoil to join their joint venture with PetroFrontier Corp and Baraka Energy and Resources.

The announcement comes after a stressful year for Ausdrill, which halved its profit expectations of A$90.4 million at the end of last financial year, to A$45 million last November.

Image: SMH

To keep up to date with Australian Mining, subscribe to our free email newsletters delivered straight to your inbox. Click here.