Deep directional drilling contractor DDH1 has acquired Strike Drilling to combine their complementary services for the mining industry.
Perth-based, private-equity controlled DDH1 believes its deep directional coring combined with Strike’s air core and reverse circulation capabilities will enable them to offer the full suite of drilling services required across the resources life cycle.
Both companies have a “modern, standardised and highly productive” drill rig fleet, according to DDH1.
Strike will retain its brand as part of DDH1, continuing to be managed by a senior management team led by chief executive and managing director Richard Bennett.
It will also continue a growth strategy, and provide expanded capacity and service capabilities to their clients.
The companies have worked closely together on a shared contract basis for three years, according to DDH1 managing director Murray Pollock.
He said DDH1 had observed Strike’s premium customer service offering, the productivity gains delivered by its modern dual-capacity air core and reverse circulation fleet, and quality management team led by Bennett.
“Together, we are committed to being the drilling contractor and employer of choice in the Australian mining and exploration industry,” Pollock said.
“Richard will join the DDH1 board, bringing his many years of drilling management experience and we look forward to his input.
“As the industry recovers following a long period of exploration drilling under spend, we feel the timing is perfect for DDH1 and Strike to capitalise on the great number of opportunities in a buoyant expanding market.”
The terms of DDH1’s deal with Strike have not been revealed.
US investment company Oaktree Capital acquired a stake in DDH1 last July. Oaktree managing director Byron Beath said Strike represented a high-growth addition to the DDH1 platform and demonstrated the execution of a strategy to partner with operators like Bennett.
“Strike’s combination of unique dual-purpose rigs and best-in-class drill crews presents an exciting opportunity for DDH1 to support material capacity growth to meet customer demand,” Beath said.
“What attracted us to Strike, like DDH1, was that it was able to grow capacity and customer demand during the recent downturn which is a testament to the high-quality, differentiated service offering provided by both of these companies.”