AJ Lucas’ drilling division has signed a contract to provide a full suite of degasification and exploration drilling services at the Kestrel Coal site in the Bowen Basin, Queensland.
The contract is expected to generate $70 million in revenue over an initial three-year term, with an option to extend the contract by a further two years by mutual agreement.
Lucas’ drilling division chief executive officer Brett Tredinnick said, “this new contact, in conjunction with other recent contract wins and extensions, reinforces our leading position in the market and provides the business with a solid multi-year order book.”
AJ Lucas chairman Phil Arnall added that the drilling division now had an order book that was expected to deliver over $200 million in revenues over the next two years, subject to customer mine plans.
“This includes the Kestrel contract, as well as contracts with another five major coal mining companies that have been executed in the last 12 months,” Arnall said.
“This goes a long way to supporting and underpinning the business for many years to come.”
Arnall explained that the contract supported the decision made by the AJ Lucas board earlier in the year to continue supporting the drilling division’s targeted growth opportunities.
Tredinnick additionally said, “Kestrel is a highly valued customer of Lucas, and together we have developed a strong long-term working relationship.”
Lucas’ relationship with Kestrel includes supplying six rigs and up to 100 staff, numbers that are expected to grow with the new contract.